The National Bank of Egypt (NBE) has issued a letter of credit worth US$ 192 million for the Egyptian General Petroleum Corporation (EGPC) to finance the importing of crude petroleum from Kuwait, said Mahmoud Montasser, general manager and member of the board of directors of NBE. NBE allocated monthly credit facilities from US$190 million to US$200 million for EGPC varying according to the price of petroleum barrel to finance the importing of crude petroleum from Kuwait so as to meet the country's requirements of diesel and gas. Kuwait grants EGPC a reprieve for nine months to pay its debts. Hossam Arafat, chairman of Petroleum Products Division at Federation of Chambers of Commerce, said the shortage percentage in the local market reached 40%, noting that petrol stations face shortage of petroleum products as the rate of fuel smuggling reached 27%. NBE is the largest financier of EGPC as it seized 30% of the total value of finances offered to the Corporation which reached EGP 65 billion. NBE's portfolio allocated for the petroleum sector reached EGP 50 billion. NBE renewed credit facilities worth EGP 22 billion for EGPC in FY 2012/2013 to finance the importing and purchasing of raw materials and other requirements. EGPC is committed to paying its debts without defaulting because it has good cash flows.
