Islamic Finance Corporation signs $3b agreements with Egypt

The International Islamic Trade Finance
Corporation (ITFC) has signed two new agreements totalling US$3 billion
with Egyptian General Petroleum Corporation (EGPC) and the General
Authority for Supply Commodities (GASC).

The agreements were to facilitate the framework of agreement initially signed in January 2018.

The first Master Murabaha agreement was
signed by Hani Salem Sonbol, Chief Executive Officer ITFC and Mr. Ahmed
Yousef, Deputy Chairman of the Commodity Supply Authority to support the
provision of goods supplies worth US$1 billion
dollars, benefiting 67 million citizens.

The signing was witnessed by Dr. Aly
Meselhy Minister of Supply and Internal Trade and Dr. Sahar Nasr,
Minister of Investment and International Cooperation, Dr. Sahar Nasr, in
the Ministry of Investment and International Cooperation.

The second agreement was signed by Abed
Ezz El Regal, Chief Executive Officer EGPC with total financing of US$2
billion, in the presence of Eng. Tarek El Molla, Minister of Petroleum
& Mineral Resources at the EGPC Head Office.

The Framework Agreement Initially signed
on 30th January 2018, with the objective to finance the importation of
commodities such as petroleum, petroleum products, gas, wheat, foodstuff
and other goods for the benefit of the Arab
Republic of Egypt in the amount of U.S. $3 billion.

Commenting on the announcement, Hani
Salem Sonbol, ITFC Chief Executive Officer, said, “Here at ITFC, we
recognize the immense strategic importance this agreement holds for our
relationship with the government and people of the
Arab Republic of Egypt.

The benefits for economic development,
social welfare development and intra-trade development cannot be
understated. We look forward to years of continued partnership.”

“To date, ITFC has signed five framework
agreements with the Government of Egypt represented by the Ministry of
Investment & International Cooperation totaling U.S. $ 9.2 billion.

“The agreement is indicative of strong
ongoing links between the Islamic Development Bank (IsDB), the parent
group of ITFC, and the Arab Republic of Egypt.

“Since 1985-2007, IsDB has approved
about U.S. $1.675 billion for the Arab Republic of Egypt, mostly to
finance the importation of petroleum and refined petroleum products as
well as wheat. Since its inception in 2008 and until
Aug 2018, ITFC has also approved about US $ 7.274 billion to finance
the importation of crude oil and petroleum products in addition to food
commodities and other products.

“ITFC has also been supporting the Arab
Republic of Egypt through its trade-related programs including the Aid
for Trade Initiative for the Arab States (AfTIAS) Program and the Arab
Africa Trade Bridges (AATB) Programme.’’