ITFC Provides Funds worth USD 300 Million to the General Petroleum Authority Today, 24 June 2013, the Prime Minister Dr. Hisham Kandil received the CEO of the International Islamic Trade Finance Corporation (ITFC) (affiliated to the Islamic Development Bank (IDB) Group) Dr. Walid Wahib and his accompanying delegation at the signing ceremony of the final financing agreement by virtue of which ITFC will provide USD 300 million in favor of the General Petroleum Authority, representing the third tranche of the framework agreement signed on 1 July 2012 between the Ministry of Planning and International Cooperation (MOPIC) and ITFC for the provision of USD 1 billion. The signing ceremony was attended by the Ministers of Finance, Planning and International Cooperation, Petroleum and Mineral Wealth as well as ITFC’s CEO Office Director Mr. Gamal El-Sayed Omar and the Financing Director for Egypt Operations Mr. Emad Attallah. This agreement was concluded out of the government’s keenness to secure petroleum products, being a strategic commodity required by the society. The General Petroleum Authority had received the first tranche of this framework agreement worth USD 235 million by virtue of the agreement signed in October 2012, the amount of which was completely drawn, so was the second tranche worth USD 141 million for which an agreement was signed on 9 January 2013. Accordingly, the General Petroleum Authority has received funds worth USD 676 out of the total sum of USD 1 billion. It is worth noting that ITFC is keen on supporting the Egyptian economy during this current phase. Therefore, it offered financing with facilitated terms where the interest rate was 3.75% as compared to 5.5% and 6% after Egypt’s credit ranking has fallen. This financing also contributes to lessening the burden of securing foreign currency and foreign financing and reducing the demand for foreign reserve, thereby giving it a chance to reach its former levels, which will, in turn, support the Egyptian economy and lessen the economy’s slow pace. ITFC is deemed an arm of the IDB Group, which is a key development partner for Egypt. The Corporation aims to develop and encourage trade and trade-related cooperation in member states of the Islamic Conference. Since starting its operations in 2004, i.e. within four years only, the Corporation has provided over USD 2.7 billion in favor of Egyptian governmental authorities and private sector companies working in strategic sectors, such as those of petroleum and gas as well as food products. ITFC also approved three structured finance operations worth USD 50 million in favor of private sector companies working in the field of wheat, corn and soya beans. Part of these funds are also used to support fodder industries which many Egyptians relay on for earning a living. Besides these funds provided to these vital sectors, ITFC provided USD 10 million in favor of the Social Development Fund (SDF) for supporting small and medium enterprises (SME’s) and the projects of fresh graduates who are self employed, especially in the fields of animal wealth and services provision in Egypt. Finally, Dr. Kandil spoke of the Egyptian government’s appreciation of IDB Group’s development role in gene ral and ITFC’s role in particular in supporting the Egyptian economy during this important phase. He expressed that he was looking forward to the constant cooperation between Egypt and IDB Group in support of development in Egypt. mopic.gov.eg/News/EventDetail.aspx?ModID=4&MedId=336
Posted on: Mon, 24 Jun 2013 17:48:17 +0000
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