NKB Sues National Gas Egypt for Loan Repayment

NKB Sues National Gas Egypt for Loan Repayment

National Bank of Kuwait (NBK) has sued both National Gas Egypt and the Egyptian Natural Gas Holding Company (EGAS) before the Economic Court for the delayed repayment of a EGP 75m loan. The organizations borrowed the amounts to fund the pumping of gas to around 60,000 consumers in Zagazig city in Sharqia Governorate, reported Al Borsa.

Judicial sources stated that EGAS is involved because it was the holding company that pledged to guarantee National Gas would pay its dues to the bank. While, National Gas Company had received the EGP 75m loan and according to article no.7 of the agreement, the company should process the project efficiently following the right engineering, financial and operational techniques using the loan to fund the third phase of the project to deliver gas to Zagazig. It is noted that the organization has completed the delivery to  60,000 dwellings.

According to article no.2 of the agreement, National Gas must guarantee payment of its future debt. However, company did not process loan payback installments and associated interest.  Thus, the bank had sent an official warning in January 2012 requesting the payment of EGP 72.2m.

Sarah Samir 2790 Posts

Sarah has been writing in the oil and gas field for 8 years. She has a Bachelor Degree in English Literature. She has three years of experience in the banking sector.

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