Egypt gets second installment of $1 bln loan

Egypt gets second installment of $1 bln loan

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Wed, 09/01/2013 - 14:35

The General Petroleum Authority on Wednesday signed an agreement with a member of the Islamic Development Bank Group to receive a US$265 million loan under an Islamic murabaha arrangement.

A murabaha is a non-interest-bearing loan.

A statement issued by the Cabinet on Wednesday said that the installment was the second of a loan the International Islamic Trade Finance Corporation offered to Egypt in accordance with a framework agreement signed in July amounting to $1 billion. 

Finance Minister Morsy Hegazy said the government is negotiating with the Islamic Development Bank to get further assistance for infrastructure projects, according to the statement.

Meanwhile, Waleed al-Wohaib, CEO for the International Islamic Trade Finance Corporation, said in the government-issued statement that the institution trusts the Egyptian economy and the government’s ability to meet its obligations.

He added that the corporation has signed two framework agreements with Egypt, the first of which was signed on 8 March and offered $2.2 billion in financing for the GPA and the Supply Commodities Authority.

The second framework agreement of $1 billion was signed on 1 July to finance the import of petroleum products and wheat and other foodstuffs.