Back to the complete issue
Sunday, 29 July 2018

ING Groep suspends credit for Egypt wheat shipments in latest wheat drama

ING Groep suspends credit for Egypt wheat shipments in latest wheat drama: Egypt is at risk of attracting fewer numbers of offers in its wheat tenders after Dutch lender ING Groep reportedly decided to “suspend lending for wheat shipments sold to [Egypt’s] state-run buyer,” sources familiar with the matter told Bloomberg. The decision was the result of the General Authority for Supply Commodities’ (GASC) “slowed processing” of wheat transactions in recent years, which has seen ING “hit by payment disputes involving cargoes sold by AOS Trading DMCC to GASC,” according to the sources.

Egypt, however, objected to the news, saying that payments were late due to delays in delivery. “Egypt issues payments for the cargoes once suppliers have fulfilled the terms of the contract,” Supply Ministry adviser Nomani Nomani told the news service, “adding that suspending lending tarnishes the country’s image.”

Background: GASC had removed Dubai-based trader AOS from its list of approved suppliers earlier this month after repeated delays in the delivery of a shipment in June. The state-buyer had also cancelled two orders of Russian wheat from AOS. Egypt had made its most expensive wheat purchase since 2015 last week, paying an average USD 235.65 per tonne, after a drought hit Europe and the Black Sea region.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.