Hungary inks €900 mln deal to finance Egypt’s purchase of 700 train carriages

Egypt has signed on Wednesday a letter of intent (LoI) with Hungary where the latter will finance its sale of 700 train carriages to the North African country in a deal worth €900 million ($1 billion).

Under the LoI, Hungary will also give 80 train carriages to the state-run Egyptian National Railways as a “gift” worth a €100 million grant.

The LoI was signed between the Egyptian Minister of International Cooperation Sahar Nasr and Zoltán Urbán, CEO of the Hungarian Export-Import Bank in the presence of Egyptian President Abdel Fattah al-Sisi and Hungarian Prime Minister Viktor Orbán.

Prime Minister Orbán arrived in Cairo on Tuesday along with the Hungarian ministers of foreign affairs and commerce as well as top business executives.

Egypt will repay the financing over 12 years in addition to a five-year grace period at an annual interest rate of 1.26 percent, Egyptian Minister of International Cooperation Sahar Nasr stated.