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Egypt broke and out of gas as banks refuse to extend credit

Special to WorldTribune.com

CAIRO — Egypt, beset by the worst financial crisis in years, has
been struggling to import oil.

Cairo’s petrol stations are seeing long queues as motorists wait for hours to fill their tanks with the country’s dwindling supplies. /Photo by Bassam Al-Zoghby

Industry sources said the regime of President Mohammed Morsi has been refused credit by foreign banks for the import of gasoline and other fuel.

The sources said Egypt’s state-owned Egyptian General Petroleum Corp., facing nationwide fuel shortages, required several attempts until it could persuade foreign companies to supply oil for the rest of 2012.

“Egypt can only buy oil from Western companies for a significant premium and only on a short-term basis,” a source said.

In 2012, more than a dozen foreign banks reduced credit lines to Egypt, hampered by massive government deficits since the ouster of President Hosni Mubarak in January 2011. The sources said Egypt intends to award Royal Dutch Shell and other companies contracts for the delivery of up six million
barrels of oil in November and December 2012.

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