Iraq Offers Credit in Egypt Oil Deal

By John Lee.

Iraq has agreed in principle to offer a three-month, interest-free credit term to Egypt on its deal to sell 4 million barrels of crude a month.

According to the report from Dow Jones Newswires, the move could ease the fuel shortage that has recently hit the Egyptian economy.

Baghdad is to supply Cairo with 2 shipments of Basra light crude each month at international prices, but the payment will be deferred for three months with no interests incurred.

The first cargo is expected in Egypt next month once the deal is finalised; the value of the deal is close to $400 million a month, based on current market prices.

An Egyptian official told the news agency that Egypt was keen to get nine months credit, but Iraq could not agree to this.

(Source: Dow Jones)

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