Egypt working to free airlines’ $240 million blocked funds
The International Air Transport Association (IATA) is working with Egyptian authorities to find a practical solution to release foreign exchange funds claimed by international airlines operating to Egypt.
Since March 2016, airlines have been unable to repatriate the full amount due them under international conventions, as a result of restrictions imposed by the Egyptian Government. The current value of funds blocked in Egypt stands at $275 million.
Discussions between airlines, the Central Bank of Egypt and Egypt’s Civil Aviation Authority have resulted in the release of $240m for repatriation. Talks continue to establish an achievable payment schedule to settle the remaining amount.
Connectivity is critical for Egypt. Aviation supports over 1 million jobs and provides $13.1 billion in social and economic benefits to the country.
Venezuela owes foreign airlines operating into the country $3.780 billion, the highest of the blocked funds, followed by Nigeria, put at $591 million, Sudan, $360 million, Egypt, $291 million and Angola, $237.
In Nigeria, IATA said in June this year that the total airline funds blocked from repatriation in the country are nearing $600 million.
Repatriation issues arose in the second half of 2015 when demand for foreign currency in the country outpaced supply and the country’s banks were not able to service currency repatriations.
Nigerian authorities were engaged with the airlines and were together with the industry, seeking possible measures to make the funds available.
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