Egypt Secures $1.5 Billion ITFC Loan to Bolster Food and Energy Security

Egypt has signed a $1.5 billion loan agreement with the Islamic Trade Finance Corporation (ITFC) to enhance food and energy security, a crucial move for the North African nation.

Since 2008, the ITFC has supported Egypt with over $24 billion in funding, significantly benefiting the energy sector, food security, and small businesses, according to ITFC CEO Adib Youssef al Aama. The support includes $8.8 billion directed toward the General Authority for Supply Commodities for food imports such as wheat.

The agreement comes amid economic challenges exacerbated by the ongoing war in Iran, pressuring Egypt's financial stability and reform path under its $8 billion IMF program. Additionally, the government is considering replacing its subsidy scheme with cash transfers.

(With inputs from agencies.)