According to the Egyptian Ministry of Supply, the state grain buyer GASC is delaying the opening of letters of credit for the payment of imported Wheat (in some cases by several months) to ease the financial pressures created by the US dollar deficit in the country, Reuters reports.
It is noted that most deferred shipments are shipped and unloaded with no downtime. Local market operators estimate that the payment delays for the purchased from GASC Wheat are unprecedented. For example, Egyptian state banks have to open letters of credit for around 8 to 11 portions of grain.
"The government does not want to increase pressure on the central bank, so we are gradually stopping working with suppliers and hope for their understanding," Egyptian Supply Minister Ali Moselhi said.
Recall that problems with payment for purchased batches of agricultural products arose in Egypt in December 2022, when payment for the contracted goods was supposed to be made within 180 days using letters of credit.
Source: APKinform (Ukraine)