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Sunday, 27 January 2019

Egypt’s GASC secures USD 1 bn from ITFC

Egypt’s wheat importer secures USD 1 bn in funding: State grain buyer GASC has secured USD 1 bn of a USD 3 bn funding agreement with the Islamic Trade Finance Corporation to fund purchases, a senior government source with direct knowledge of the matter told Reuters on Wednesday. “The loan can be renewed whenever the money runs out so this is GASC turning to on-sight payments from now on,” the source said. “GASC may also renew financing when the initial USD 1 bn tranche is used up so deferred payments for grain will no longer be an issue,” the source added.

The move is expected to speed GASC’s payments to global traders especially in light of a new rule by GASC last Monday that would see it using at-sight letters of credit (LCs) for upcoming wheat tenders, assuring payments to suppliers as soon as they submit the necessary documents. The agreement with the ITFC was signed last September.

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