Turkey immunizes loan to Egypt against judicial rulings

Turkey immunizes loan to Egypt against judicial rulings

On

Thu, 27/12/2012 - 19:18

Turkey has immunized its US$2 billion loan to Egypt against variables such as a court ruling, said a government source.

The loan agreement also requires the Egyptian government to involve Turkish companies in public sector investment.

The source, who requested anonymity, added that Egypt would not be able to obtain international or regional loans before the International Monetary Fund decides on the US$4.8 billion loan that Egypt has requested.

Turkey is the only country that agreed to lend money to Egypt in advance of the IMF’s decision, of which US$500 million have already been disbursed, with the rest to be paid end January. The loan does not entail any special benefits.

The Turkish government has stipulated that any dispute over the loan would be arbitrated in Istanbul, in accordance with the rules of international commercial arbitration.

Edited translation from Al-Masry Al-Youm