DUBAI  - Egypt's General Authority for Supply Commodities (GASC) may use up to $1 billion of a loan from the International Trade Finance Corporation for its wheat purchases, a senior government source with knowledge of the matter told Reuters.

Egypt, the world's largest buyer, said on Monday it would pay for wheat bought in upcoming international purchase tenders by opening letters of credit on sight, instead of with payment guaranteed within 180 days, after securing a $3 billion loan from the International Trade Finance Corporation. 

"The loan can be renewed whenever the money runs out so this is GASC turning to on sight payments from now on instead of using facilities," the source said.

(Reporting By Maha El Dahan; Editing by Susan Fenton) ((Maha.Dahan@thomsonreuters.com; + 9712 4082101; Reuters Messaging: maha.dahan.thomsonreuters.com@reuters.net))