An official source at the Egyptian Ministry of Electricity, said that the Ministry has paid EGP 20b of its debt to the Ministry of Petroleum and Mineral Resources in outstanding debts accumulated over several years and decreasing the remaining arrears to EGP 40b, Petro Press informed.
The source also mentioned that the Ministry paid the debt from a loan obtained from national public banks. The National Bank of Egypt took over the loan and divided it into two phases, of which the first phase is worth EGP 5b with % 15.75 interest rate. Egyptian Electricity Holding Company bears 10% of the first phase of the loan, while EGPC bears 5.75% of it.
On the other hand, the second phase of the loan worth EGP15b with 15.75% interest rate and will be paid by the Ministry of Electricity and the Ministry of Petroleum and Mineral Resources.
The source also pointed out that the Ministry of Electricity is repaying at least EGP 600m per month for the Ministry of Petroleum for power plants fuel supply, while the total value of withdrawals is much bigger than that, pointing out that the Ministry of Finance bear part of the cost of fuel each month.