Cairo, June 30 / BNA / The World Bank said, on Wednesday, that Egypt will obtain a loan of $ 500 million from the World Bank to help finance its purchases of wheat with the rise in prices due to the Russian invasion of Ukraine.
The Associated Press reported that the funds approved by the Board of Executive Directors of the World Bank, Tuesday, aim to support Egypt’s efforts to provide subsidized bread to poor and vulnerable families.
She said the money would help the government of the Arab world’s most populous country finance purchases of imported wheat.
“This emergency operation comes at a very critical juncture when the food security of many countries is threatened by the war in Ukraine,” said Marina Weiss, World Bank Director for Egypt, Yemen and Djibouti.
Egypt is the world’s largest importer of wheat, and the country’s supply is subject to price changes in the international market. The war in Europe has already driven up grain prices since Russia and Ukraine each exported nearly a third of the world’s wheat.
About 70 million Egyptians depend on government-subsidized bread, most of which is made from imported wheat. According to official figures, about a third of Egypt’s population, which is over 103 million, lives in poverty.
The government is struggling to keep bread prices at their current level and has already allowed private bakeries to increase prices.
The government said earlier this month that it plans to reduce its wheat imports by 500,000 tons annually, or about 10%. Supply Minister Ali al-Moselhi said the company would import up to 5.5 million tonnes in the next fiscal year, which begins on July 1.
MI