WASHINGTON (Jul. 10)
The International Development Association (IDA), a World Bank affiliate, today made its first loan to Egypt for its industrial development. IDA announced a credit of $15 million to the Egyptian government for the use by the Bank of Alexandria, one of the country’s large commercial banks, to help cover its industrial financing. “Industry is the leading growth sector of Egypt but it has been hampered by the scarcity of imported equipment and goods,” IDA said in a statement.
The credit is for 50 years and is free of interest. While the Egyptian government will pay IDA three-fourths of one percent as a service charge to cover IDA’s administrative expenses, it will relend the money to the bank at seven per-cent per annum. The bank will relend the proceeds to sub-borrowers at nine and one-half percent, excluding normal banking charges, IDA reported.