Egypt secures loan from German Development Bank

The financing is the third tranche of the second stage of the debt swap program

  
An employee counts Egyptian pounds in a bank in Cairo, Egypt, November 3, 2016.

An employee counts Egyptian pounds in a bank in Cairo, Egypt, November 3, 2016.

REUTERS/Mohamed Abd El Ghany

ArabFinance: The German development bank KfW will provide EUR 41 million to the Education Ministry in 2022as part of a German-Egyptian debt-for-development swap program, the International Cooperation Ministry said in a statement.

The funding will be allocated to three projects that aim to develop technical and vocational education in Egypt.

The financing is the third tranche of the second stage of the debt swap program, and will be disbursed after the two sides agree on priority projects for funding.

The German-Egyptian debt for development swap program was launched in 2011, as both sides agreed to cancel EUR 240 million in Egyptian debt owed to Germany, with the country instead allocating those funds to development projects in Egypt.

The first EUR 70 million phase has been received in full, and saw the implementation of projects targeting education and nutrition, the rehabilitation of hydroelectric stations, and the improvement of drinking water and sanitation services.

The second phase saw KfW disbursed a first tranche worth EUR 10 million to the Education Ministry to improve education, while the second EUR 80 million tranche supported projects to develop human resources and improve sanitation in Upper Egypt.

However, Germany has pledged financing of EUR 1.7 billion for ongoing projects in Egypt covering various sectors.

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