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Egypt struggles to pay for oil and LNG imports as dollar strengthens

by ChemOrbis Editorial Team - content@chemorbis.com
  • 24/12/2015 (14:37)
According to media reports, Egypt is facing difficulty covering the cost of its dollar based oil and liquefied natural gas (LNG) imports due to a foreign currency crisis.

The country reportedly has asked its oil and LNG suppliers to extend payment terms to 90 days after delivery earlier this month. Under the existing terms, Egypt is obliged to pay for LNG imports 15 days after a cargo unloads.

Egypt has faced dollar shortages recently as foreign currency receipts have sharply declined since late October as safety concerns have cut into tourism revenue after a Russian plane crashed near the holiday resort of Sharm el-Sheikh.

Egyptian Minister of Tourism Hisham Zaazou reported that Egypt’s tourism sector has lost EGP2.2 billion ($280.9 million) per month since then. In addition, plunging crude oil prices are pressuring Gulf countries to limit their aid to Egypt.
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