Egypt to get $1 bln loan from Turkey

ANKARA - Anatolia News Agency

Turkey- Egypt loan deal has been inked during Morsi’s recent visit to Ankara. AFP photo

Turkey and Egypt have signed a loan agreement of $1 billion during a meeting attended by Prime Minister Recep Tayyip Erdoğan and Egyptian President Mohamed Morsi.

Deputy Prime Minister Ali Babacan and Egyptian Finance Minister Momtaz al-Saeed signed the loan agreement, said Babacan’s press office in a written statement.

The statement also said that both parties are also working on a $1 billion financing scheme that will be carved out by Türk Eximbank to finance the export of goods and services to Egypt from Turkey.
Both efforts are expected to boost economic and commercial relations between the two countries significantly in the near future, the statement said.

Meanwhile both countries have discussed improving economic and commercial relations at the Turkey-Egypt Business Forum organized on Sept. 30 by the Union of Chambers and Commodity Exchanges of Turkey (TOBB).

Roll-on, roll-off (ro-ro) services from the southern ports of İskenderun and Mersin to Damietta will commence soon, said Turkish Economy Minister Zafer Çağlayan.

The bilateral trade volume hit $3.5 billion in the first eight months of the year, Çağlayan said, adding that the figure may reach $10 billion in a short time.

“Turkish businessmen showed that they were the true friends of Egypt. They continued production at their factories during the period of panic,” he said.

Çağlayan said both parties had agreed to update the existing free trade agreement and include agricultural and processed agricultural goods alongside industrial products in the agreement.
Egyptian Trade and Industry Minister Hatem Salah said he expected bilateral trade volume to hit $5 billion this year.

Egyptian Industrial Development Group (IDG) and Turkish Elif Plastic signed an agreement of cooperation at the event. The Turkish company will make an investment of $160 million in Egypt, according to the deal.

Morsi called for lifting visa requirements between the two countries to prop up bilateral business in his speech at the forum.

“Egypt is a large market with a population of 90 million. Investments are guaranteed and the return is higher than other countries, because the cost of production is very low. We can produce, market and export together.”