Libya to supply Egypt with oil on credit to help ease crisisApril 28, 2013 - 17:38 AMT PanARMENIAN.Net - Libya will soon start shipping oil to neighboring Egypt on soft credit terms, two senior Libyan officials said, as Cairo struggles to pay for energy imports and avoid fuel shortages, Reuters reported. The officials told Reuters that Tripoli would supply Cairo with $1.2 billion worth of crude at world prices but on interest free credit for a year, with the first cargo expected to arrive next month. Egypt has slid into economic crisis since president Hosni Mubarak was overthrown two years ago. Most international companies have reduced oil product supplies to the country fearing non-payments, as the government tries to curb soaring energy subsidy costs which swallow up a fifth of its budget. Libya plans to ship one to two cargoes a month for refining in Egypt under a deal that involves 12 million barrels of crude over 12 months, the oil industry officials said. With foreign currency reserves running low, Egypt has not bought any crude on the open market since January. In rough terms the Libyan deal would be worth slightly more than half its 2012 imports, which the central bank put at $2 billion. Libyan authorities themselves face a daily struggle to keep services running and take control of a country awash with weapons looted from the arsenal of Muammar Gaddafi, who was toppled in 2011. But the official said Libya could not shy away from helping an important trading partner. Cairo has so far failed to agree a $4.8 billion loan deal with the International Monetary Fund and has sought help from energy producing countries in the region and beyond. Tripoli has already deposited $2 billion at the Egyptian central bank and Qatar has announced $8 billion in loans, grants and other deposits since Islamist President Mohamed Mursi was elected last June. Top stories Azerbaijani President Ilham Aliyev arrived in Moscow on April 22 to hold talks with Russian counterpart Vladimir Putin. Authorities said a total of 192 Azerbaijani troops were killed and 511 were wounded during Azerbaijan’s offensive. In 2023, the Azerbaijani government will increase the country’s defense budget by more than 1.1 billion manats ($650 million). The bill, published on Monday, is designed to "eliminate the shortcomings of an unreasonably broad interpretation of the key concept of "compatriot". Partner news | Ucom Celebrates Telecommunication Day May 17 commemorates the founding of the International Telecommunication Union on May 17, 1865. Armenian, Azerbaijani heads of parliament meet in Switzerland President of the Armenian parliament Alen Simonyan met with the Speaker of the Azerbaijani Milli Majlis Sahiba Gafarova. Border residents overnight on highway to protest Armenia’s Residents of Kirants continue to express outrage over the government’s decision to cede land to Azerbaijan. Get Started: An educational platform for young startuppers The Get Started program which operates in two phases is an important platform for young startuppers. |