Egypt to borrow 500 million dollars from the African Bank

In a bid to ease trade movement with African countries, Egypt signed a cooperation agreement with the African Export & Import Bank (AEIB), hereby raising 500 million-dollars, according to a statement by the Egyptian Ministry of Trade & Industry.

Tarik Qabil, Egyptian Minister of Trade & Industry, insisted that: “The agreement targets the securing of a number of facilities, including funding the insurance and providing the necessary guarantees for promoting Egyptian exports dedicated to AEIB member states, as well as ensuring these states will pay for Egyptian imports.”

The Cairo-based bank, established in 1993, includes 37 African countries all aiming at financing and encouraging trade both regionally and internationally. Qabil has stated among other things that these facilities are intended to finance the projects implemented by Egyptian investors in AEIB member states, in addition to further Egyptian efforts to develop small and medium businesses sector, and to develop supply chains by offering credit lines to new companies.

Egyptian Ministry of International Cooperation has announced in the middle of this month that the African Bank for Development has agreed to a 500 billion dollars soft loan for Egypt as part of an integral program for development and for injecting 1.5 billion dollars into the budget over the course of three years.