International Islamic Trade Finance Corporation (ITFC) approves financing of $700 million grain imports to Egypt

Egyptian Supply Minister Ali al-Moselhi said on Saturday that the International Islamic Trade Finance Corporation (ITFC) has approved $700 million in funding for grain imports to Egypt.

This deal is part of a funding agreement that was struck in 2018 between Egypt and ITFC. Last year, the agreement was extended for another five years, while the credit limit was adjusted from $3 billion to $6 billion.

The minister stressed that Egypt's strategic wheat reserves are currently sufficient for 5.9 months. In addition, the government has already purchased 3.44 million tons of local wheat and plans to purchase another 4 million tons during the current harvesting campaign, which is nearing completion. The annual public procurement period for wheat is usually April-July.

It is worth noting that last year the government bought a total of 4.2 million tons of wheat, which fell short of the target of at least six million. The purpose of increasing domestic purchases of wheat is to reduce import costs and reduce the burden on foreign exchange reserves. With dollars in short supply, Cairo is seeking to increase local wheat production and improve the country's food security.

In response to recent concerns, the Egyptian cabinet on Friday flatly rejected any defaults on payments for imported wheat. The government remains committed to ensuring a stable and reliable supply of wheat through both domestic production and imports.