RIYADH: Egypt is in talks with regional and international banks as it ponders a loan of around $2.5 billion to relieve growing economic pressure, Bloomberg reported citing people with knowledge of the plans.
Government officials said they had no information on the issue, and the sources quoted by Bloomberg said that discussions may not result in a deal.
First Abu Dhabi Bank and Abu Dhabi Commercial Bank are leading the loan discussions and have invited other banks to participate, they added.
Two of the people said that the borrowing is expected to be priced at around 400 basis points over the three-month secured overnight financing rate.
Egypt is seeking to garner $41 billion to pay for its current account deficit and maturing debt by the end of 2023, Bloomberg said.
The African country needs to urgently secure more foreign currency in its $400 billion economy to plug gaping deficits.
The world’s largest wheat importer has been hit hard by the soaring oil and commodity prices, and by the loss of tourists from Russia and Ukraine, leading to pressure on the country and pushing it to seek International Monetary Fund assistance.
Egypt has also secured financing from the Gulf, with Saudi Arabia, the UAE and Qatar pledging more than $22 billion in deposits and investments in the struggling economy.
The Saudi Egyptian Investment Co., a company wholly owned by the Public Investment Fund, acquired minority stakes in four Egyptian companies for $1.3 billion earlier this week.
This deal comes as part of the Kingdom’s commitment to channel resources.