Turkey Has Immunized Its USD 2 Billion Loan to Egypt Against Variables

A government source said that Turkey has immunized its USD 2 billion loan to Egypt against variables such as a court ruling.

The loan agreement also requires the Egyptian government to involve Turkish companies in public sector investment.

The source, who requested anonymity, said that Egypt would not be able to obtain international or regional loans before the International Monetary Fund decides on the USD 4.8 billion loan that Egypt has requested.

Turkey is the only country that agreed to lend money to Egypt in advance of the IMF’s decision, of which USD 500 million have already been disbursed, with the rest to be paid end January. The loan does not entail any special benefits.

In accordance with the rules of international commercial arbitration, the Turkish government has stipulated that any dispute over the loan would be arbitrated in Istanbul.