ITFC intervention to help finance essential strategic food commodities in light of the impact of COVID-19
JEDDAH, Kingdom of Saudi Arabia, — The International Islamic Trade Finance Corporation (ITFC), has signed a US$100 million financing agreement with the General Authority for Supply Commodities (GASC) to cover the Egyptian Government’s essential strategic commodity needs during the outbreak of the new coronavirus (COVID-19).
The Approval of the financing, which forms part of the ITFC’s Master Murabaha Agreement, enables Egypt’s General Authority for Supply Commodities to mitigate the very worst human impacts of the coronavirus pandemic by securing food commodity imports.
From his side, H.E Dr. Ali Al-Mesilhi, Minister of Supply and Internal Trade, affirmed that the Ministry of Supply represented by the General Authority for Supply Commodities appreciates and thanks the International Islamic Corporation for Trade Finance for the cooperation and continuous support, whether this year or previous years, that is demonstrated by the immediate response. Through this agreement, Egypt will meet the necessary and urgent needs in such exceptional circumstances that the Republic and the world as a whole are going through.
Commenting on the ITFC’s approval for the financing, Eng. Hani Salem Sonbol, ITFC CEO, said: “The financing that has been approved by the ITFC is specifically targeted at supporting the importation of critical basic commodities such as wheat and sugar, which are two staples that the mass population of Egypt depends upon. ITFC is absolutely committed to doing what it can to assist in achieving food security in Egypt during a time when national economies are struggling with the economic impact of this terrible new disease.” The amount will be used to purchase 240 thousand tonnes of wheat & 100 thousand tonnes of sugar.
The wheat policy is of strategic importance to the Egyptian Government to ensure food security for all Egyptians. Since 2018, ITFC has been supporting the Governments’ efforts through a trade finance facility benefiting the GASC, Egypt’s largest wheat purchaser. ITFC extended US$393 million which was utilized in 2019 for the import of 1.3 million tonnes of wheat and 130 thousand tonnes of rice.