Economic

Egypt: Paying $ 138 million in Emirati Dana Gas dues

Egypt has entered the vortex of loans in a way that suggests that it will not emerge from it in the short and medium-term at least, as it issues international bonds of about 7-10 billion dollars.

From time to time, Egypt requires loans from international institutions and Gulf countries, and it also requests postponing the repayment of loans due to it in exchange for higher interest.

Until the end of March 2020, the Egyptian external debt service (installments and interest) amounted to about $ 30 billion, representing about two-thirds of Egypt‘s foreign exchange reserves of $ 44.9 billion.

$ 111 million Outstanding payables

The Emirati company, “Dana Gas“, said on Wednesday that it had received $ 138 million of its dues with the Egyptian government during the past year.

In a press statement on its website, the company said that it was able to reduce the total outstanding receivables in Egypt by 21%, to reach $ 111 million at the end of 2019 compared to $ 140 million.

Last June, the company said that its dues with the Egyptian government fell 38% during the first half of last year, to reach $ 125 million after the company received $ 78 million during this period.

The UAE company in Egypt has 14 development licenses, 3 exploration concessions, and two gas processing facilities.

Dana Gas has faced problems in collecting payments in Egypt, as Egypt has faced some difficulties in paying the dues of foreign companies since the outbreak of the January 25 revolution nearly 8 years ago, due to the scarcity of foreign exchange.

In November 2019, the Egyptian General Petroleum Corporation (government), paid $ 105 million in arrears to the UAE company, Dana Gas.

In March 2019, the UAE company, Dana Gas, announced that it would receive a payment of $ 19 million (70 million dirhams) of its overdue dues in Egypt.

This payment consists of an amount of 10 million dollars received from the Egyptian government in the Egyptian pound and 9 million dollars from the sale of a shipment of Al-Wastani capacitors.

Paying the Egyptian external debt takes half a century

The Egyptian economist, Mamdouh El-Wali, revealed that paying the Egyptian external debt installments will take more than half a century, as it extends to 2071, noting the significant rise in borrowing that the country has witnessed in recent years.

In a post on his account on Facebook, Al-Wali said: “Central bank data released today on the balance of external debt to Egypt by the end of June (June) of 2019 indicated that the value of external debt, medium, and long-term, including benefits, reached $ 129.372 billion.”.

He added that this comes “other than the short-term external debt, including interest, which is due to be paid within a year, amounting to about 11.181 billion dollars.”

Egypt: Paying $ 138 million in Emirati Dana Gas dues

“The total short, medium and long-term external debt will reach 140.552 billion dollars in interest,” according to the Egyptian expert, who specializes in economic affairs, and who served as former captain of Egyptian journalists.

And his publication concluded by saying: “The payment of installments and interest on the medium and long-term external debt continues until the first half of 2071, that is, for 51 years from now.”

Selling company assets in Egypt

In July 2019, two informed sources said that the UAE company, “Dana Gas“, authorized the investment bank “Theodore Pickering Holt & Co.” to advise it in selling its assets in Egypt, whose value exceeds $ 500 million, while the company turns to focus on its activities in Iraqi Kurdistan.

Dana Gas‘s exploration and production assets in Egypt are land assets in the Nile Delta region, with the exception of Sector VI in the eastern Mediterranean.

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