World Bank, AfDB to visit Egypt Sept-end to negotiate $1.5 bln loan

A joint delegation from the World Bank and the African Development Bank (AfDB) will be visiting Egypt at end of this month, Egyptian minister of trade announced Thursday.

The delegation is set to resume negotiations with the Egyptian government over a $1.5 billion second tranche of loan package from the World Bank and the AfDB, Minster Tarek Qabil said following a meeting with representatives of the two banks.

In the presence of Minister of International Delegation Sahar Nasr, officials reviewed the second tranche of $1.5 billion financing package, including $1 billion from World Bank and $500 million from AfDB, to support the Egyptian government’s economic reform scheme.

“We are looking forward to receiving the second tranche of World Bank and AfDB financing soon,” Minister Nasr said.

In January, Egypt received US$1.5 billion worth of the first tranches of both African Development Bank and World Bank’s loans.

The North African country has received US$500 million as part of a $1.5 billion loan agreement reached between Egypt and the AfDB last December. The AfDB’s loan is of 0.6 percent interest, with a five-year grace period to be paid over 20 years.

As for the World Bank’s loan, Egypt has received the first $1 billion tranche of a US$3 billion loan agreed upon on 19 December. The WB loan is with an annual interest of 1.6 percent, and a five-year grace period to be paid over 35 years.