Ministry of Finance allocates $100m for petroleum deficit

Daily News Egypt
2 Min Read

The Ministry of Finance (MOF) has allocated EGP 100 million to the Egyptian General Petroleum Corporation (EGPC) for supplying all electricity stations with the required petroleum needs.

Minister of Finance Momtaz Al Saeed stated that during July and August, the Ministry allocated EGP 600 million to the EGPC in order to procure the necessary fuel for power generation stations.

During the fiscal year of 2010-2011, the total allocated capital by the MOF to the EGPC has increased to $5.8 billion. In addition, another $600 million were provided as guarantees from the MOF to the petroleum sector last year.

The Minister confirmed that the committee appointed by Ministries of Finance, Petroleum and Electricity is dedicated to fulfil the national requirements of petroleum products. The committee is keen on resolving any emerging crisis facing the domestic fuel market or electricity stations.

In its attempts to secure financial resources and alleviate strain off the public budget, the government managed to acquire several credit facilities. The facilities were granted by Islamic Trade Finance Corporation (ITFC) and the Saudi Fund for Development (SFD) in order to purchase the required petroleum products.

El Saeed agreed to provide EGP 125 million to the Fund of Restructuring Public Companies Programme, of which EGP 60 million would be spent on delivering late employee wages for the month of August, and EGP 65 million would be used in retirement-compensation arrangements for employees of those public companies.

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