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 on Monday, didn’t give further details on the facility.
Later the same day he told a conference that a line of credit with India hadn’t been opened, according to Egyptian media, but that discussions were underway with India and other countries about facilities to boost trade.
Deputy Supply Minister Ibrahim Ashmawy said the deal comes in the context of swap agreements that Egypt has with several nations, including India and Brazil. He said, in an interview with Al Hekaya talk show host Amr Adib, also on Monday, that India is a “very good” partner.
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.
The Middle East’s most populous nation is trying 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.
Egypt often uses credit lines from other countries to import key commodities, including food. The Indian 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.
(Updates with comment from deputy minister in fifth paragraph.)
Author: Abdel Latif Wahba and Tarek El-Tablawy
