World Bank to Cease Giving Loans to Egypt; Nasser Seeks Credit in Moscow
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World Bank to Cease Giving Loans to Egypt; Nasser Seeks Credit in Moscow

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The World Bank has announced that it will no longer make any more loans to Egypt and two other countries because they expropriate foreign private investment without fair compensation, it was reported here today.

George D. Woods, president of the Bank, known formally as the International Bank for Reconstruction and Development, announced the ban on further loans to Egypt at the conclusion of the Bank’s five-day annual meeting in Tokyo. The other two countries barred from borrowing World Bank funds are Ceylon and Indonesia. Loans by the World Bank to Egypt through last June totaled $49,250,000, all of which has been disbursed.

(It was reported from Moscow, meanwhile, that Egyptian Prime Minister Ali Sabri will arrive in the Soviet capital next week to discuss the use of credits announced when Premier Khrushchev visited Cairo last May. Khrushchev promised the Nasser Government a long-term credit totaling $280,000,000 in addition to economic and military aid already provided.)

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