A loan agreement and a memorandum of understanding (MoU) was signed here today in the presence of Egyptian Premier Dr. Eissam Sharaf and Saudi Ambassador to Egypt and the Permanent Representative of the Kingdom of Saudi Arabia to Arab League Ahmed bin Abdulaziz Qattan. The agreement was co-signed by Deputy President of Saudi Development Fund (SDF) and Managing Director Eng. Yousuf Al-Bassam on the Saudi side, and Minister of Electricity Dr. Hassan Yunus on the Egyptian side. The loan agreement stipulates financing of power generation plant project in Banha at the cost of about $ 50 million with an annual rate of interest at 2 per cent to be repaid in 30 years with a 5 years as a period of grace, while the MoU concerns SDF contribution to an Egyptian development program which takes three forms, the first is to provide a donation of $ 200 million to finance small and medium sized enterprises, the second is to provide loans with lenient terms totaling $ 500 million to fund development projects of priority at an annual rate of interest of 2 per cent with a 5 years as a period of grace to be repaid in 30 years, while the third and last one in earmarked to fund non-oil Saudi exports to Egypt at the cost of $ 750 million. -- SPA
