Minister highlights fact on French loans to Egypt in 2019-23



Thu, 10 Dec 2020 - 10:22 GMT


Thu, 10 Dec 2020 - 10:22 GMT

FILE - Minister of State for International Cooperation Rania al-Mashat

FILE - Minister of State for International Cooperation Rania al-Mashat

CAIRO – 10 December 2020: Minister of State for International Cooperation Rania al-Mashat stated in a phone-in Wednesday that the loans given by France to Egypt between 2019 and 2023 are developmental loans.


That means their grace periods extend between five and seven years, and they are paid back over 25-35 years with an interest rate that can be as low as 0.25 percent. That is because they are directed at infrastructure projects.  


In January 2019, the Egyptian and French presidents signed the Memorandum of Understanding for the Strategic Partnership in Social and Economic Development worth €1 billion for 2019/2023.


Earlier this week, Egypt signed development funds worth €715.6 million in several development sectors with the French Development Agency (AFD) during the three-day state visit paid by President Abdel Fatah al-Sisi to Paris.


The Minister of International Cooperation signed 7 documents, with the Director of AFD which are financing the energy sector policy support program, with a value of €150 million, and €1 million grant, with the aim of building capacity to develop a methodology and tool for assessing the social and direct and indirect economic impact, of the regulations and policies that prepared by the Electricity Utility and Consumer Protection Regulatory Agency, and to encourage electronic transport; to start transforming the transport sector on a greener path; and the application of international standards for the development regulations of energy services companies and recommendations related to Egypt.


They also signed the document of the budget support program to support the comprehensive health insurance system, with a value of €150 million, which the government seeks to implement to provide insurance coverage for all citizens to achieve the third goal of the sustainable development goals related to good health and well-being, and the financing document for the re-establishment of the French University was signed with a loan in the amount of €12 million and a grant of €2 million, as part of the government's efforts to develop and enrich the educational system and to enhance investment in human capital.


The Minister of International Cooperation signed a loan for the development of the Tanta / Mansoura / Damietta railway line, with a value of €95 million, and a loan of €250 million for financing the development of the Abu Qir railway. 


A financing loan of the sewage treatment plant in Helwan, worth €52 million, was signed. They also signed a financing program for transforming financing systems towards climate in Egypt, with a grant of €1.5 million, and a partnership agreement to implement a technical cooperation project to support the teaching of the French language in Egyptian government schools, with a grant of €1.5 million. The latter grant comes with the aim of supporting the development of curricula and educational resources, and providing linguistic and educational training for teachers.


According to the statement, this came in addition to the signing of a document between the governments of Egypt and France on cooperation in the field of university hospitals, which aims to train workers in the health sector, strengthen the institutional capacities of public hospitals and support equality in the health sector.


The total portfolio of economic cooperation between the two countries since 1974 and up to date has reached €7.5 billion, through more than 42 cooperation protocols in various sectors, including transportation, electricity, civil aviation, housing and sanitation, health, agriculture, irrigation, and small and medium enterprises, Environment, impacts, basic and technical education.



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