Arab Fund postpones Egypt's payback for 1 year because of COVID-19

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Wed, 14 Oct 2020 - 08:02 GMT

The Arab Fund for Economic and Social Development (AFESD) logo – official website

The Arab Fund for Economic and Social Development (AFESD) logo – official website

CAIRO – 14 October 2020: The Cabinet ratified on Wednesday the initiative of the Arab Fund for Economic and Social Development (AFESD) to push back the due dates of loan installments and interests scheduled as of July 1, 2020 to June 30, 2020 in order to mitigate the economic and financial impact of COVID-19 outbreak.  

 

On June 1, Egypt and AFSED signed a loan agreement worth KD 75 Million to partially finance a water system for Bahr El Bakar Wastewater Treatment Plant. On August 8, 2018, both parties also signed a loan agreement worth KD 70 million to contribute in the financing of the same project.

 

The former is repayable over 30 years - including a 6-year grace period - with a 2.5-percent interest rate per annum. The latter is repayable over 30 years - including a 5 year grace period – with the same interest rate as the other. The same conditions apply to a loan worth KD 40 million, and signed in August 2018 to partially finance the second phase the Development of the Electrical Transmission Grid.

 

In order to contribute in financing the first phase, a loan worth KD 60 million was signed in April 2018. The loan is repayable over 30 years – including a 4-year grace period – with an annual interest rate of 2.5 percent.

 

The fund's total financing to projects in Egypt is worth KD 1.7 million.

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