Kingdom provides millions in aid to Egypt
June 21, 2011
A loan agreement and a memorandum of understanding (MoU) were signed in Cairo today in the presence of Egyptian Prime Minister Dr. Eissam Sharaf and Saudi Ambassador to Egypt Ahmed bin Abdulaziz Kattan.
The agreement was co-signed by Deputy President and Managing Director of the Saudi Development Fund (SDF) Yousuf Al-Bassam and Egyptian Minister of Electricity Dr. Hassan Yunus. The loan will finance a power generation plant project in Banha at the cost of about $50 million to be repaid over thirty years with a five year grace period and a two percent annual interest rate.
The MoU outlined the SDF’s contributions to a three-pronged Egyptian development program. The assistance will include: a donation of $200 million to finance small and medium sized enterprises; $500 million in loans for development projects to be repaid over thirty years with a five year grace period and a two percent interest rate; and the funding of Saudi non-oil exports to Egypt at a cost of $750 million.