(Corrects day in first paragraph to Wednesday from Thursday)
CAIRO, March 1 Egypt's top cigarette maker
Eastern Company said on Wednesday it had reached an
agreement with its international partner Philip Morris
for the tobacco giant to pay back outstanding debt and make
future payments in the local currency.
Philip Morris, which has an agreement with Eastern Company
to produce its local brands, halted paying dues in dollars in
return for its production last year.
Eastern Company expects $105 million in total arrears dating
back to July 2016 to be paid back this month, chairman Mohamed
Haroun told Reuters.
Haroun said that Philip Morris will also begin paying for
its local production in Egyptian pounds as opposed to dollars
beginning this month at a fixed exchange rate of 18 pounds to
the dollar through February 28, 2018.
Egypt's pound was about 15.8 pounds to the dollar
(Reporting by Ehab Farouk; Writing by Eric Knecht; Editing by
Louise Heavens and David Evans)