Extended credit period from Iran
COLOMBO: Petroleum and Petroleum Resources Development Minister A.H.M.
Fowzie and Ceylon Petroleum Corporation (CPC) Chairman Ashantha de Mel
have successfully negotiated an extended credit period of full 90 days
from Government of Iran.
The CPC has entered into an agreement with Iranian authorities to
obtain an additional suppliers' credit facility for another period of 90
days at a concessionary interest rate from November 1, 2008, the CPC
said.
The CPC already enjoys four months of extended suppliers' credit
facility from Iran
at zero interest rate.
Therefore, with this facility the CPC enables to settle its petroleum
bills after seven months while accumulating adequate foreign exchange
from the domestic market smoothly without pressurizing the exchange
market.
The CPC expects to defer at least around US$ 1 billion worth of bills
under this facility.
The CPC is also planning to extend a suppliers' credit facility used
for importation of diesel by another term with effect from January 1,
2009. This facility will also provide a cushion of US$ 300 million to
CPC.
|
