Egypt delays wheat import payments over hard currency shortage

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Egypt has delayed payments for its large wheat purchases, for months in some cases, amid the current shortfall in hard currency, Reuters reported on May 25th, citing Minister of Supply Ali Moselhy and traders.

The country’s state grains buyer has postponed opening letters of credit to pay for wheat imports to mitigate the financial burdens resulted from the foreign currency shortage, Moselhy stated.

Four grain traders told Reuters anonymously that these delays were unprecedented as they were extending to months.

They added that the banks affiliated with the General Authority for Supply Commodities (GASC) have delayed opening 180-day letters of credit, which guarantee the due date of payments for suppliers for weeks and sometimes months after shipment.

“We do not want to add pressure on the central bank. Hence, we are phasing with the suppliers and so we have to thank the suppliers very, very, very much for their understanding,” Moselhy commented.