Egypt has signed a $1.5 billion financing agreement with the International Islamic Trade Finance Corporation (ITFC) to fund the country’s trading, including imports of energy products and essential commodities. The funding will be used to cushion the economy from the impact of the pandemic and the fallout from the war in Ukraine.
“The framework agreement that was signed between Egypt and the ITFC in 2018 and was renewed in 2022 for an additional five years, with an amendment to the credit limit of the agreement from $3 to $6 billion,” the Ministry of Planning and Economic Development said in a Facebook post on Sunday.
Egypt’s Planning and Economic Development Minister Hala al-Saeed said at a signing ceremony in Cairo that the financing cooperation portfolio between the country and the corporation totals $14.5 billion so far.
Last year, Egyptian authorities signed a similar agreement worth $1.5 billion with the Saudi-based multilateral bank which often funds the North African country’s commodities imports, including grains and petroleum.
Egypt also signed a $120 million financing agreement with the Islamic Corporation for the Development of the Private Sector (ICD) to expand credit lines for financial institutions operating in the country and provide financing for private sector companies.
The International Monetary Fund approved a deal to provide a $3 billion support package to Egypt for almost four years with the agreement expected to draw in an additional $14 billion in financing for the Middle East country.
