Oil Ministry gets even nicer with industry with a new debt-relief initiative
Oil Ministry gets even nicer with industry with a new debt-rescheduling initiative: The Oil Ministry has approved a new initiative which would reschedule payments owed by manufacturers in arrears to state-owned natural gas providers, said minister Tarek El Molla in a statement on Wednesday (pdf). Businesses with overdue payments for gas they consumed in excess of their contracted annual amounts will be allowed to pay the ministry in installments over a five-year period. Interest payments to the ministry could be eliminated entirely if they pay the ministry back immediately. Interest payments would be reduced 80% for those who make full payment in the first year.
The move is part of a series of incentives and debt-relief measures announced this week that are meant to encourage investment in industry, but which also appease manufacturers who have been calling for gas prices to be reduced. Other measures announced include eliminating a 2.5% surcharge on manufacturers’ overdue bills to EGAS and setting a lower insurance fee that requires producers to pay a deposit covering 30 rather than 60 days of consumption.