|06 September, 2018

Egypt to get $1bln for basic goods from Islamic Bank - ministry

The International Islamic Trade Finance Corporation will provide Egypt with $1bln to support the provision of basic goods

Produce is displayed at a vegetable market in Cairo, Egypt June 15, 2016. Picture taken June 15, 2016. REUTERS/Mohamed Abd El Ghany

Produce is displayed at a vegetable market in Cairo, Egypt June 15, 2016. Picture taken June 15, 2016. REUTERS/Mohamed Abd El Ghany

REUTERS/Mohamed Abd El Ghany

CAIRO - The International Islamic Trade Finance Corporation (ITFC) will provide Egypt with $1 billion to support the provision of basic goods, the Egyptian investment ministry said on Thursday.

The financing is part of a $3 billion agreement with the ITFC, part of the Islamic Development Bank (IDB), to support the supply of commodities to 67 million of Egypt's more than 90 million citizens, the ministry said in a statement.

Egypt's economy was battered after a 2011 uprising ushered in political instability that initially scared off tourists and foreign investors.

The import-dependent country has shown signs of recovery in recent months amid tough reforms including cuts to energy subsidies, part of a $12 billion International Monetary Fund loan agreement.

Earlier this week Egypt signed contracts with two global banks to hedge against fluctuating global oil prices. 

The investment ministry said the ITFC financing was part of a new cooperation strategy between Egypt and the IDB lasting until 2021.

It did not give details on the terms of the financing.

(Reporting by Ehab Farouk, writing by Aidan Lewis Editing by Kirsten Donovan and Catherine Evans) ((Aidan.Lewis@tr.com;))