The Ministry of Finance will make immediate guarantees worth NIS 1 billion available to enable the government-owned utility to get through its cash flow crisis.
In accordance with its commitments to the Israel Electric Corporation (IEC) (TASE: ELEC.B22), the Ministry of Finance will make immediate guarantees worth NIS 1 billion available to enable the government-owned utility to get through the cash flow crisis brought about by the cessation of the gas supply from Egypt.
As a consequence of the halting of Egyptian gas, IEC has been required to buy far more expensive fuels. The Ministry of Finance and the Public Utilities Authority (Electricity) have allowed the IEC to implement a gradual in electricity tariffs to prevent a sharp spike in the price of electricity to Israelis.
While providing the latest guarantees, the Ministry of Finance is also monitoring how the IEC is handling the flawed process by which the utility prepared a cash flow report which fell far below the sums actually needed.
Published by Globes [online], Israel business news - www.globes-online.com - on November 6, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012
Amiram Barkat and Adrian Filut
Amiram Barkat and Adrian Filut
Amiram Barkat and Adrian Filut