India has extended a credit line to Egypt, according to the country's Supply Minister Ali El-Mosilhy. The value of the facility has not been revealed but it is expected to be primarily used to import key commodities and ease pressures on the country's heavily troubled economy. Egypt is looking to bounce back after the economic impact of Russia's invasion of Ukraine and faces major challenges as a large importer of wheat and other commodities. In addition to the credit line, the country has agreed a $3bn deal with the International Monetary Fund and has received investment pledges from Gulf Arab allies.
Citigroup predicts that the credit line and other investments may ease the pressure on the economy to the extent that the authorities may delay the proposed devaluation of Egypt's currency. Some signs of progress have appeared in Egypt's plan to sell state assets, and the country is enjoying a tourism rebound. India and Egypt have been working to build closer ties in recent years, and President Abdel-Fattah El-Sisi was a special guest at India's Republic Day parade in January. Indian Prime Minister Narendra Modi is expected to travel to Egypt later this month.