Egypt contemplating $2.5-bilion loan to address growing economic pressures

Egypt is considering taking a loan estimated at around $2.5 billion from regional and international lenders to tackle growing economic pressures, reports say.

The government, Bloomberg has revealed citing sources familiar with the matter, is negotiating with regional and international banks over the details of the financing.

The talks, the unnamed sources told the US media, are private and preliminary. The sources added that the discussions may not result in any deal. First Abu Dhabi Bank and Abu Dhabi Commercial Bank are leading the loan, while other banks have been invited to take part in the financing, the sources also indicated.

Two of the sources said that the loan is expected to be priced at nearly 400 basis points over a three-month secured overnight rating rate.

Egypt, a major food importer, has struggled to cope with record grain prices fueled by the Russia-Ukraine war. The two countries at war previously supplied most of Egypt’s wheat and were a major source of visitors for its economically important tourism industry.