Egypt Expects to Sign Agreements With European Investment Bank Worth Euro 575M
Egypt is expecting to sign agreements with the European Investment Bank worth EUR575 million in the second half of October, Ministry of International Cooperation said on Sunday.
The bank's deputy head is set to visit Egypt in the second half of October, according to a statement by the ministry citing the EIB's Director of Operations in Southern and Eastern Neighbouring Countries Heinz Olbers.
The agreements are aimed to finance the purchase of 13 trains for a second metro line as well as small and medium enterprises, the statement said.
Last Friday, Egypt received the first $1 billion tranche of a $3 billion three-year loan from the World Bank aimed at supporting the government's reform programme.
Egypt has also reached a preliminary agreement with the International Monetary Fund (IMF) on a $12 billion loan over three years to help plug a funding gap.
Accordingly, the cash-strapped government is applying the reform programme which includes cuts to expensive energy subsidies and the introduction of new tax measures to cut spending and meet conditions for the loan.
The country is currently facing an acute foreign currency shortage due to pressures on its foreign reserves after years of political turmoil.
In August, the net foreign reserves currently reached $16.564 billion, still less than half of the foreign reserves Egypt had before Mubarak's removal when they were almost $36 billion.
