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Project Insights

IOCs step up pressure on Egypt

Cairo wants to use some of an upcoming $12 billion IMF loan to pay off its debts to IOCs, but other industries also need cash Cairo wants to use some of an upcoming $12 billion IMF loan to pay off its debts to IOCs, but other industries also need cash.
By Rachel Williamson 19 December 2016 Middle East & Africa / Companies & Finance 0 23245
A wellhead at West Dikirnis, Egypt. The country owes around $3.6 billion to IOCs. (Petroceltic)

IOCs are stepping up pressure on the Egyptian government to pay its debts as the country prepares to receive a $12 billion loan from the International Monetary Fund (IMF).

This year Egypt and the IMF finally agreed on the terms of a major loan to stabilise the cash-strapped economy. In return Egypt must undertake major economic reforms, one of which was floating the local currency.

Egypt’s Ministry of Petroleum wants to use $500 million of the first $2.7 billion tranche of the loan to pay its IOC...