The International Islamic Trade Finance Corporation (ITFC) signed a $100 million financing agreement with the General Authority for Supply Commodities (GASC) to cover the Egyptian government’s essential strategic commodity needs amid the COVID-19 pandemic.
According to a statement, the approval of the financing, which forms part of the ITFC’s Master Murabaha Agreement, enables Egypt’s GASC to mitigate the harsh human impacts of the coronavirus pandemic by securing food commodity imports.
The amount will be used to purchase 240,000 tons of wheat and 100,000 tons of sugar.
ITFC CEO Hani Salem Sonbol said the facility approved by the ITFC is specifically targeted at supporting the import of critical basic commodities such as wheat and sugar, which are two staples the mass population of Egypt depends on.
“ITFC is committed to doing what it can to assist in achieving food security in Egypt during a time when national economies are struggling with the economic impact of this terrible new disease,” he added.
Since 2018, ITFC has been supporting the government's efforts through a trade finance facility benefiting the GASC, Egypt’s largest wheat purchaser.
ITFC allocated $393 million for Egypt in 2019 that was dedicated to import 1.3 million tons of wheat and 130,000 tons of rice.