Regulatory Alerts2021-03-15
A circular dated March 15, 2021 regarding financing gas dues from ceramic companies within the private industrial sector initiative
Cairo, Egypt - On March 15, the Central Bank of Egypt has approved a rescheduling of debts for ceramics and porcelain companies to benefit gas companies over ten years. This was in response to a meeting between the Ministry of Petroleum and Mineral Resources, natural gas companies, and ceramic and porcelain industry associations. The move will allow gas companies to pay off their debts more easily. In February 2021, the Central Bank of Egypt decided to allocate 1.2 billion Egyptian pounds to fund the debt repayment for ceramics and porcelain firms that wish to reschedule their debts owed to natural gas companies. The funding will be made directly available to these firms through participating banks. To qualify, ceramic and porcelain firms must reach an agreement with the Ministry of Petroleum and Mineral Resources, natural gas companies, and pay 50% of the overdue fees owed to natural gas companies by December 31st, 2019. They also need to ensure they can service the loans in future installments."