Arab Fund postpones Egypt’s dues for 1 year because of COVID-19

The Egyptian Cabinet approved an initiative of the Arab Fund for Economic and Social Development (AFESD) to postpone the due dates of loan installments and interests in order to mitigate the economic and financial impact of COVID-19 outbreak.

On June 1, Egypt and AFSED signed a loan agreement worth 75 Million Kuwaiti dinar to partially finance a water system for Bahr El Bakar Wastewater Treatment Plant. On August 8, 2018, both parties also signed a loan agreement worth KD 70 million to contribute in the financing of the same project.

The former is repayable over 30 years – including a 6-year grace period – with a 2.5-percent interest rate per annum. The latter is repayable over 30 years – including a 5 year grace period – with the same interest rate as the other.

The Arab Fund’s total financing to projects in Egypt is worth KD 1.7 million.