Islamic Development Bank to lend Egypt US$330 million

Several local and regional banks are preparing to give the Egyptian government a US$330 million loan, in the second portion of a loan worth US$1.2 billion total.

The loan will be given by the International Islamic Trade Finance Corporation, which is affiliated with the Islamic Development Bank, to help Egypt provide basic and strategic commodities.     

The loan will be allocated to import wheat and food commodities after the first loan, worth US$235 million, went to the Egyptian General Petroleum Corporation.

On 1 July, Egypt signed a framework agreement with the International Islamic Trade Finance Corporation for the loan to provide basic and strategic commodities to citizens, particularly petroleum products and wheat.

The loan is subject to a three percent interest. The Arab Investment Bank, United Bank, Faisal Islamic Bank, the National Development Bank in cooperation with Abu Dhabi Islamic Bank, the Jordan Islamic Bank and the Bangladesh Bank will contribute to the loan.

Egypt is a founder of the Islamic Development Bank and is eligible to receive assistance from the bank’s different institutions.

Edited translation from Al-Masry Al-Youm

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