Presidency approves soft loans, grants from foreign entities
Adly Mansour - YOUM7 (Archive)

CAIRO: Interim President Adly Mansour issued on Thursday three presidential decrees to approve syndicated soft loans and grants with European bodies, the United Arab Emirates government and the OPEC Fund for International Development (OFID) for development projects for drinking water, sewage and irrigation plants, Shorouk reported.   

The first presidential decree approved a 209 million euro loan, signed mid-April between Egypt and its European partners including Agence Francaise de Developpement (AFD), the European Investment Bank, European Commission and the State Secretariat for Economic Affairs, Shorouk reported. The syndicated loan will be allow completion of developmental projects in Upper Egypt, it said.

The developmental projects include improving drinking water, sewage and irrigation plants in Minya, Assyut, Sohag and Qena, serving more than 15.3 million people, it reported. Egypt is also investing 94 million euros in the developmental projects, it said.

Relations between the European Union and Egypt have faltered since the military ouster of democratically-elected Islamist President Mohammed Morsi for its perceived intervention in Egypt’s internal affairs and support for Brotherhood rule. But relations have improved gradually as the military’s political roadmap nears completion, with EU Foreign Policy Chief Catherine Ashton confirming the EU’s support for Egypt.

Mansour’s second presidential decree approved a $4.9 billion grant from the UAE signed in October 2013 to fund a number of vital projects in cooperation with the Ministry of Defense, Shorouk reported.

“Such new projects will include building new schools, developing infrastructure, funding small and mid-cap youth enterprises and meeting citizens’ needs in energy and food industries,” said Sultan Al Jaber, UAE Minister of State for Economic Affairs, adding that the projects are expected to be complete by mid-2015, Al-Masry Al-Youm  reported.

The third presidential decree approved a syndicated loan of $30 million with a 2.6 percent interest rate signed in Washington, D.C., on April 2013 between the Egyptian government and the OFID to develop irrigation plants and drainage pumps, Shorouk reported.

The soft loan will be repaid in 15 years in yearly installments of $2 million with interest, it said.

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