Egypt pays $1.5 billion arrears to international oil firms | North Africa
Egypt owes a lot of capital to international oil firms, and the country can not move forward economically, or progress in any way until the debt has been payed.
A massive sum of money amounting to $1.5 billion that Egypt’s government owes to several international oil companies has just been approved. Failing to pay back such a debt bought the country down and the moment Egyptian government and officials realised this, the debt started to decrease as Egyptian government started to pay back.
Egypt hasn’t had it easy over the last several years; the country’s economy has been an injured one due to political disturbance that made tourists and investors to afraid to enter the country. This resulted in diminishing tax revenues and inflows of foreign currency.
The government of Egypt has had the difficult task of trying to get oil companies investing again in extraction and exploration across the region. Egypt’s government intends to achieve the targeted economic growth of 3.5% in the economic year to end-June.
So who exactly is providing this capital for the payment of the country’s debt? It was disclosed that the central bank would supply the dollars needed to pay the international oil firms. Financial disclosures by firms including BP PLC, BG Group, Edison SpA and TransGlobe Energy show Egypt owed them more than $5.2 billion at the end of 2012.
In the week after the army takeover, Saudi Arabia, Kuwait, and the United Arab Emirates pledged a combined $12 billion in grants, interest-free loans, and oil products.
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