Egypt Secures $1.2 Billion from ITFC

To help shore up its budget and pay for imports Egypt has borrowed $1.2 billion in the form of a credit facility from the International Islamic Trade Finance Corporation (ITFC).

Planning and International Cooperation Minister Faiza Abu el-Naga said that the loan carries a 3.75% interest rate and will be available immediately. It will be used for imports of oil, oil products, wheat and other food commodities.

"This loan will reduce pressure on foreign reserves," Abu el-Naga said.

The country’s economy has seen a severe downturn since the popular revolution to oust former President Hosni Mubarak from office took place. While industries contributing to Egypt’s budget, such as the petroleum industry, have kept functioning throughout the troubled times the country did see a massive drop in one of its largest income generators, tourism.