Egypt 'negotiating $2.5 billion loan' as economy suffers: report

Egypt is reportedly eyeing up the possibility of raising around $2.5 billion in loans as its economic crisis continues to spiral, anonymous sources familiar with the matter told Bloomberg.

Talks between Cairo and regional and international banks about the details of the financing of the loan are in the early stages, the sources said. Egyptian government officials said they are unaware of the talks, according to the business news outlet.

On Wednesday, Egypt's statistic agency CAPMAS released data that showed annual urban consumer inflation accelerated to a higher-than-expected 13.6% year-on-year in July from 13.2% in June.

Among the biggest annual price increases were food and beverages and hotels and restaurants, the data suggested. The increase in food prices included staples such as grains and bread, dairy products, and eggs.

According to Egypt's central bank, core inflation, which excludes volatile items such as food, increased to 15.6% year-on-year in July from 14.6% in June.

Egypt is currently relying on financing from Gulf Arab countries to keep the economy afloat. Qatar, Saudi Arabia and the United Arab Emirates have pledged more than $22 billion in deposits and investments.

Egypt has been among the worst-hit countries in the Middle East and North Africa region by a grain supply crisis that has resulted from Russia's invasion of Ukraine.