CAIRO, May 14 – Egypt signed a $1.5 billion financing agreement with the International Islamic Trade Finance Corporation on Wednesday to help support food security and energy imports amid mounting regional and economic pressures.
Under the agreement, $700 million will be allocated to General Authority for Supply Commodities to support food imports, while $800 million will go to Egyptian General Petroleum Corporation, Planning Minister Ahmed Rostom said during the signing ceremony.
ITFC Chief Executive Officer Adib Youssef al Aama said the institution has approved more than $24 billion in financing for Egypt since 2008, supporting sectors including energy, food security and small businesses.
The financing has included approximately $8.8 billion for Egypt’s food procurement agency, helping finance imports of around 12.6 million tons of wheat.
The ITFC has also supported Egypt in settling arrears owed to foreign oil companies, which the government has pledged to fully repay by the end of June.
Egypt operates one of the world’s largest bread subsidy programs, relied upon by roughly 70 million people and costing the government more than $2.6 billion annually.
The government said last week it may phase out the current subsidy system and replace it with direct cash transfers beginning in July.
The financing agreement comes as Egypt faces renewed economic strain linked to the conflict involving Iran, which has increased pressure on energy markets and investor sentiment across the region.
The North African economy remains dependent on foreign portfolio inflows and imported gas supplies while continuing reforms tied to its $8 billion program with the International Monetary Fund.
