The Madbouly government has greenlit a plan that allows industrial players to reschedule their debts to the Oil Ministry, several government sources told EnterpriseAM. Debt repayments that were already requested will be postponed until the end of October.

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Factories with debts to pay will have two options. They can either resume payments with a new interest rate or choose to pay off 50% of their existing debts in exchange for an interest waiver. Struggling factories may also be eligible for a full interest waiver.

The Oil Ministry is on board with the proposal because it helps companies clear their arrears, much of which were accumulated when the industrial sector — along with the rest of the economy — was dealing with a significant lack of liquidity in the market.

Factories can also clear their dues by supplying state agencies and national projects with goods rolling off their production lines, one of the government sources told EnterpriseAM. The government could retrieve half of all dues through this approach, we were told.

The move follows news just days ago that the housing minister rescheduled water overconsumption and late repayment fines for factories, which was done on the understanding that it would support the industrial sector and the country’s export ambitions, a government source told us earlier this week.

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