Egypt Seen Assured Of Wheat-Import Financing By Franceagrimer

Egypt, the world’s biggest wheat buyer, will obtain financing for its imports of the grain “no matter what,” according to Olivia Le Lamer, head of the arable-crops unit at French crop office FranceAgriMer.

Qatar, Russia and the U.S. are among countries that could jump in to provide funding for Egypt’s wheat purchases, according to a presentation by Le Lamer today in Montreuil-sous-Bois, outside Paris.

Egypt will probably need $1.5 billion to $1.8 billion to import 5.5 million metric tons of the grain for its subsidized baladi bread program, the U.S. Department of Agriculture’s Foreign Agricultural Service wrote in a report yesterday. The Middle East nation has the Arab world’s largest populace.

“There are a lot of countries mobilizing that won’t let Egypt slide into chaos due to a shortage of wheat,” Le Lamer said. “The financing will be found, no matter what.”

Egypt’s import needs are greater than expected and the government has collected less locally grown wheat than foreseen, according to Le Lamer.

Kuwait today extended a $4 billion aid package to Egypt, adding to $8 billion pledged yesterday by Saudi Arabia and the United Arab Emirates. The U.A.E. in 2008 pledged to buy 1 million tons of wheat to supply to Egypt as a gift during the food crisis that year.

Source : bloomberg