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Egypt borrows $3bn to subsidise basic commodities

September 8, 2018 at 1:37 pm

The government in Cairo has announced the signing of two agreements to borrow $3 billion to support subsidies on basic commodities, including fuel and food, reported on Friday.

According to the General Oil Commission in Egypt, it has agreed a $2bn deal to subsidise petrol and related products. The Ministry of Investment, meanwhile, said that it has agreed a loan of $1bn to help subsidise basic foodstuffs.

Both deals were signed with the International Islamic Trade Finance Corporation (ITFC), which is an offshoot of the Islamic Development Bank.

At the end of March, Egypt’s foreign debt rose to $88.163bn compared to the same period in 2017 when it was $73.88bn.

Fitch, the credit rating body, has estimated the debt to be around $100bn, equivalent to 44 per cent of Egypt’s GDP at the end of 2017. The figure stood at 23 per cent in 2016.