COMMODITIES-

Farmers to sell corn, soy and sunflower to gov’t at guaranteed prices: Ministers approved yesterday setting price floors for corn, soybean and sunflower crops sold by farmers to the government, cabinet said in a statement. Following the decision, GASC will purchase soybeans at a minimum price of EGP 18k per ton and sunflower crops for EGP 15k per ton. Farmers will receive a guaranteed price on white and yellow corn of EGP 9k and 9.5k per ton respectively.

The thinking: The move aims to encourage farmers to increase production and lower the country’s import bill, Prime Minister Moustafa Madbouly said.

It’s a win-win for farmers: The government could pay more to farmers if the price of crops at the Egyptian Mercantile Exchange (EMX) at the time of harvest and crop delivery is higher than the set guaranteed price, Madbouly said. The state would still commit to paying the set guaranteed price to farmers even if the price of crops at the EMX is lower at the time of harvest, he added.

DEBT-

A fresh loan for Qatari Diar subsidiary: Qatari Diar subsidiary East Gate Developments will get a EGP 2 bn syndicated medium term-facility from the National Bank of Egypt (NBE), Banque Misr, and QNB Alahli to fund part of the construction of the first phase of its City Gate development in East Cairo, the syndicate said in a joint statement (pdf) yesterday. The facility comes nearly two weeks after the company recruited Consolidated Contractors Company to construct a new EGP 1.75 bn phase of the project. The residential project will be valued at over USD 12 bn once complete.

REMEMBER- Qatari Diar has until 2031 to finish City Gate per a new deadline reportedly set by the New Urban Communities Authority (NUCA) in November to compensate the company, after its work had been suspended for years amid a legal dispute.