Egypt Seeks Loan to Buy Cheaper Kazakh Wheat, Reduce Reliance on Costly Russian Imports

Egypt is in talks with an Abu Dhabi bank for a loan to buy cheaper wheat from Kazakhstan amid a dollar crunch.
The deal could provide an alternative to Russian wheat, which Egypt relies on heavily but has faced pricing issues with recently.
Russia blocked Egypt's purchase of 480,000 tons below an unofficial minimum price floor set by Russia.
Egypt faces rising costs for subsidizing bread and is trying to reduce wheat import costs.
Purchasing Kazakh wheat could be logistically challenging, requiring overland transport through other countries.

reuters.com

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8/20/2023

Egypt Strikes USD 500 Million Deal with UAE to Finance Wheat Imports

### Summary Egypt has signed a deal with the Abu Dhabi Exports Office (ADEX) to secure $500 million for financing wheat imports over a period of five years. ### Facts - 🌾 Egypt has signed a $500 million deal with ADEX to fund wheat imports for five years. - 📅 The deal was secured following talks with the UAE in July. - 💰 The funds will be used to pay for imports from Al Dahra (an agricultural company based in Abu Dhabi) and ADEX. - 💸 The full amount will be dispersed in five installments of $100 million each over five years. - ⚡️ The financing package provides high-quality products at a low price and a reasonable payment plan, according to Minister of Supply and Internal Trade Ali Al-Moselhy. - 🤝 The agreement reflects the strong strategic relations between Egypt and the UAE, aiming to enhance economic integration and joint development plans. - 📝 Minister of International Cooperation Rania Al-Mashat signed the framework deal, while Minister of Finance Mohamed Maait signed the guarantee deal. - 🇪🇬 Egypt is one of the world's top wheat importers, with Russia and Ukraine being its primary suppliers. - 🔺 The deal with the UAE comes as a result of the war in Ukraine and the subsequent devaluations of the Egyptian pound against the dollar. - 📉 In July, Egypt faced record inflation rates of 38.2 percent.

9/4/2023

Exclusive-Egypt buys nearly half a million tons of Russian wheat in private deal

Egypt's state grains buyer, the General Authority for Supply Commodities (GASC), has purchased around 500,000 metric tons of Russian wheat in a private deal at a price lower than those offered in traditional tenders, as Egypt shifts towards direct purchases in the aftermath of the war in Ukraine disrupting its buying.

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Posted 9/21/2023, 9:20:00 AM