India is providing Egypt with a credit line of unspecified value, Egyptian Supply Minister Ali El-Mosilhy said, in the latest support from an ally for the North African nation’s troubled economy.
(Bloomberg) — India is providing Egypt with a credit line of unspecified value, Egyptian Supply Minister Ali El-Mosilhy said, in the latest support from an ally for the North African nation’s troubled economy.
The minister, speaking to Bloomberg News, didn’t give further details on the facility.
The Middle East’s most populous nation is racing to turn around an economy that was heavily exposed to the shock waves of Russia’s invasion of Ukraine and is a major importer of wheat and other commodities. Egypt has agreed on a $3 billion deal with the International Monetary Fund, while its Gulf Arab allies have pledged billions of dollars in investment.
Such credit lines are typically used to import key commodities, including food. The facility could ease pressures on the economy, just as signs of progress in Egypt’s plan to sell state assets and a tourism rebound lead Citigroup Inc. to predict authorities will hold off a devaluation of the currency until at least September.
India and Egypt have built ever-closer ties in recent years, with Egyptian President Abdel-Fattah El-Sisi a special guest at India’s Republic Day parade in January. Prime Minister Narendra Modi will likely visit Egypt later in June, the Press Trust of India reported this week.
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