A government source said on Sunday that Egypt has paid one billion dollars in overdue dues to foreign oil companies on Monday, as the government seeks to pay off foreign oil companies’ arrears to increase natural gas production, after production declined to 4.6 billion cubic feet per day.
The source pointed out that the total dues amount to $4.5 billion, according to an International Monetary Fund report in March, of which Egypt paid $1.3 billion as a first installment in June, then $1.2 billion in September, and finally one billion dollars on Monday.
The total amount paid amounted to $3.5 billion, leaving about one billion of the total amount due, in addition to $1 billion in interest on the total amount.
According to the source, the total amount is expected to be paid in June.
The dues were scheduled to be paid in three installments ending in October, but the Ministry of Petroleum resorted to rescheduling the debts due until June 2025.
The head of the Planning and Budget Committee in the House of Representatives, Fakhry al-Fiky, said that foreign companies operating in Egypt complained about the difficulty of transferring their profits in dollars outside the country or paying their international obligations due to the shortage of foreign currency in Egypt during the past period.
Fiky pointed out that the decline in the exchange rate of the Egyptian pound against the dollar negatively affected the value of the profits of these companies, which obtain their revenues in pounds from the local market and transfer them abroad in dollars.
He added that the Central Bank of Egypt (CBE) obtained huge foreign cash flows exceeding $55 billion, which facilitates the bank’s mission in providing the necessary cash to import goods and production requirements, transfer part of the dues of foreign companies operating in Egypt, and pay international obligations.
Fiky explained that the payment of dues showcases stability in the foreign currency liquidity situation within the banking system, which helps in paying obligations without delay or any possibility of default – in line with raising Egypt’s credit rating.
