Egypt Independent

UAE to provide Egypt with loan to purchase petroleum products



Tareq al-Mulla, executive chief of the Egyptian General Petroleum Corporation (EGPC), said the United Arab Emirates agreed to provide Egypt with a loan to meet the needs of petroleum products.

 

Emirates is not offering a grant to Egypt, but facilities in the form of a loan to purchase petroleum needs either from UAE or other countries, Mulla told Al-Masry Al-Youm.

"The Saudi petroleum aid will end this August," he said, adding that the agreement with Emirates came in time to serve local needs of gasoline, diesel oil and natural gas and fuel oil.

"The Emirati loan will last for one year and is allocated to purchase petroleum substances," Mulla said.

Costs of products are estimated at US$9 billion (around $800 million monthly).

A source from petroleum sector said Egypt will pay for the products over five year through installments every three months and a grace period of one year, according to the agreement.

Emirates is one of the biggest financial supporters of Egypt after the ouster of president Mohamed Morsy in July 2013.

The Alliance includes Commercial International Bank (CIB), Arab African International Bank, Banque Misr and Qatar National Bank.

Banque du Caire led another alliance, while the Société Arabe Internationale de Banque (SAIB) led a third alliance.

Edited translation from Al-Masry Al-Youm