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Ministry of Finance's late payment dipsute with SIIC to be settled: sources

Thursday 11 October 2018 05:33 PM

Hawamdia Sugar Factory
Hawamdia Sugar Factory

By Ahmed Ashour 
Egypt's Ministry of Finance managed to resolve dispute emanating from delaying payment of  accumulated dues owed to Sugar Integrated Industries Company in excess of EGP5bn the worth of sugar supplies provided to General Authority for Supply Commodities. 
" Ministry of Finance started last September to pay off up to EGP500mln to GASC, as the same amount shall be disbursed to the company every month till January 2019," informed sources told Al-Mal newspaper. 
Resolving the crisis allows SIIC to pay  accumulating debts owed to banks and withdraw funds out of its overdraft in order to pay farmers for sugar cane supplies and  natural gas bills. 
On the same vein, the sources said that SIIC has received from abroad tonnes of sugar cane with quantities enough for running Hawamdia's sugar refinery operating at 100,000 tonnes capacity.
Hawamdia's sugar refinery halted operations several months ago owing to lacking raw sugar amid an uptick in supply feuled by declining sugar prices abroad as well as accumulating output of state-run sugar beet factories. 
SIIC, the domestic market's biggest manufacturer of sugar with output totaling 1.1mln tonnes per year, is providing GASC with 4,000 tonnes per day, constituting 50 percent of its daily produce. 
 SIIC, has in place a Cabinet-sanctioned scheme for modernizing machines and equipment, is supplying 300,000 tonne to  Ministry of Supply and Internal Trade via Hawamdia factory with the aim of meeting soaring domestic consumption.