The deal will entail shipments of one to two cargoes per month for 12 months, on soft credit terms. The deal follows a collapse of Egyptian crude imports since January, after dwindling foreign currency reserves and the fall of the Egyptian pound against the dollar.
“Their situation is very bad, and if necessary they can take up to a year to pay for each delivery,” said a Libyan official, referring to the exports as a "neighbourly" act.
The move follows a the grant of a $2bn loan to the Egyptian Central Bank by Libya, while Qatar has pledged $3bn of aid as well as natural gas.
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