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Egypt's financial crisis is hindering payments for food commodities as banks and traders say some of the funding problems that first surfaced early last year are re-emerging.Traders and bankers said tight foreign currency reserves, combined with the central bank taking a particularly cautious approach to allocating these funds, were slowing payment procedures for food bought by state entities.While food commodities are top priorities for spending, traders are experiencing delays with letters of credit being issued for goods supplied to state buyers, including the General Authority of Supply Commodities.When any of the state tenders are awarded, the firm selling the commodity asks for the issuance of a letter of credit from one of Egypt's state-owned banks, which is then confirmed with its own bank.Egypt's central bank provides the cover to the Egyptian state banks.Rabobank is working with commodity trade houses supplying goods to Egypt's state buying entities.
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