CAIRO: Egypt will increase it’s replenishments to the African Development Fund to $2 million after a presidential decree issued Monday.
President Adly Mansour issued a decree approving the decision of the Board of Governors of the African Development Fund, which is related to the African Development Bank Group, regarding the thirteenth general renewal of the fund’s resources and Egypt’s replenishment in this renewal.
The main aim behind renewing the fund’s resources is to preserve its credit worthiness to face development needs for African countries with the least income, in line with the fund’s loan program, said the official spokesperson of presidency, Ehab Badawy.
The Egyptian government promised to increase its replenishment to $2 million,which will be paid in three equal annual installments. The first installment will be paid within 30 days of the replenishment date.The second and the third installments are to be paid by Jan. 15, 2015 and Jan. 15, 2016, Badawy said.
Egypt is an important regional and founding partner of the fund, since 1964. Egypt is one of the top shareholders of the bank,holding 3.06 percent of its subscribed capital, according to the official report of 2012-2013 ADFP project and operations.
After the January 25 Revolution, Egypt’s economic situation deteriorated and Egypt requested a loan from the bank. Tapsoba Sibry, the resident representative of the African Development Bank, said the bank would give Egypt $500 million, but only if it received an IMF loan for $4.8 billion first, as this would guarantee financial stability, Al-Ahram Online reported on July 1, 2013.
Egypt and the IMF remain in negotiations and the loan is contingent upon the country’s political stability.A few days after the overthrow of former President Mohamed Morsi on July 3, Arab Gulf states such as Saudi Arabia, the United Arab Emirates and Kuwait pledged to give Egypt $9 billion in aid.
The African Development Bank gave Tunisia a $2.1 billion loan for 2014 and 2015 in addition to $1 billion in 2013,after Tunisia received a loan from the IMF.
Egypt has not received any loans since 2013, al-Maal economic newspaper reported on March 25, 2014.