Continental Focus, International Reach

Egypt’s Petro Industry Pays Down Debt

Thursday, July 11, 2019

According to recent Reuters reporting, Egypt’s arrears to foreign oil companies declined to $900 million at the end of June from $1.2 billion a year ago. This information was provided by Tarek el Molla, the country’s petroleum minister. He also said he expected the remaining balances owed to oil companies operating in the country to be paid soon.

In cooperation with the International Monetary Fund, a set of stringent reforms have been in place for the last few years, aimed at bringing down Egypt’s debt and kick-starting the economy. Some of these reforms included the removal of subsidies previously provided by the petroleum industry to consumers, fuel and natural gas being among those that were costing the government billions.