World Bank approves $500 million loan to Egypt for food security

The World Financial institution has authorized a brand new mortgage to Egypt to assist the nation’s meals safety. 

The DC-based monetary establishment introduced the $500 million mortgage immediately. The venture will finance the procurement of wheat imports. The quantity of bread shall be equal to at least one month’s value of sponsored bread in Egypt’s nationwide subsidy program, which offers bread to 71 million low-income Egyptians. The World Financial institution mortgage may also assist Egypt scale back waste and loss in its wheat provide by way of climate-resilient storage services, in keeping with a press launch. 

Egypt requested The World Financial institution for the mortgage earlier this month. 

Why it issues: Egypt’s wheat provide has been severely impacted by the Russian invasion of Ukraine. Earlier than the struggle, Egypt imported 80% of its wheat from Russia and Ukraine. Egypt is the biggest wheat importer on the earth. 

Egypt is now scrambling to search out different choices for acquiring wheat. Most just lately, Egypt has been negotiating with India on wheat imports. Egypt can be ramping up home wheat manufacturing. 

Egypt’s finance minister stated in March that nation had eight months’ value of wheat reserves. 

Wheat costs in Egypt rose significantly after the Ukraine struggle started. 

Know extra: The struggle in Ukraine has led to meals and gasoline value will increase throughout the Center East. 

Egypt can be experiencing excessive inflation, like different international locations within the area. The Central Financial institution of Egypt declined to boost rates of interest final week. 

What’s subsequent: Egypt can be searching for a brand new mortgage from the Worldwide Financial Fund.