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Wednesday, 16 February 2022

Egypt signs USD 1.5 bn funding agreement for basic imports with ITFC

The ITFC is lending us another USD 1.5 bn for petroleum + commodities imports: Egypt has signed a fresh USD 1.5 bn financing agreement with the International Islamic Trade Finance Corporation (ITFC) to fund imports of petroleum and basic commodities, ITFC CEO Hani Sonbol told Bloomberg Asharq. The agreement earmarks USD 800 mn for petroleum, and USD 700 mn for commodities. No details were given on when it would be disbursed.

We were expecting the Madbouly government to finalize a financing program with the IITFC in February, but it’s unclear whether this is the same package referred to in the statement. Separately, Sonbol last month said the corporation had approved USD 2.6 bn in funding for “development projects” in Egypt, without giving further details on where the money would be spent, nor when it would be disbursed.

2021 was “a record year” for ITFC funding to Egypt, Planning Minister Hala El Said said recently. The ITFC provided the General Authority for Supply Commodities (GASC) and the Egyptian General Petroleum Corporation USD 2.3 bn in financing last year for the import of basic commodities including wheat, and petroleum products.

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