Egypt has signed a $1 billion loan agreement with the International Islamic Trade Finance Corp. to help pay for the country’s energy and food imports.
ITFC is a subsidiary of the Islamic Development Bank. Its loan forms part of the IsDB’s three-year $2.5 billion commitment to Egypt in June 2011.
The country risks a balance of payments crisis and has struggled to secure promised aid from wary donors who pledged support before Hosni Mubarak’s ouster. Recent difficulty obtaining money for fuel created shipping delays and disrupted supply chains for farming and other industries, according to Middle East news outlet Al Bawaba. Further, more than $2 billion in debt incurred since the Arab Spring is due for repayment in the next few months.
To get the economy back on track, newly elected Egyptian President Mohammed Morsi is expected to approach the International Monetary Fund and other development banks once his cabinet is in place, according to Reuters.
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About the author
Jennifer Brookland
Jennifer Brookland is a former Devex global development reporter based in Washington, D.C. She has worked as a humanitarian reporter for the United Nations and as an investigative journalist for News21. Jennifer holds a bachelor's in foreign service from Georgetown University and a master's in journalism from Columbia University and in international law and diplomacy from the Fletcher School. She also served for four years as an Air Force officer.