Posted by: APO | 16 July 2009

BADEA EXTENDS FOUR LOANS WORTH US $ 28 MILLION


 

BADEA EXTENDS FOUR LOANS WORTH US $ 28 MILLION

CAIRO, Egypt, July 16, 2009/African Press Organization (APO)/ — Arab Bank for Economic Development in Africa (BADEA), signed today Thursday 16 July 2009, in Cairo, Arab Republic of Egypt, THREE loan agreements with the Republics of: Uganda, Cameroon, Lesotho, in addition to a Line of Credit to the Development Bank of Central African States. The Loans extended by virtue of those agreements are based on easy terms and aim at contributing to financing development projects in the afore-mentioned African countries. The total amount of these loans is US $ 28 million and is allocated as follows:

– US $ 10 million to the Republic of Uganda, to participate in financing Urban Markets and Marketing Development of the Agricultural Products Project-Lot II. The loan will be repaid in 40 years, including a grace period of 10 years, and at an annual interest rate of 1%. The Project aims at enhancing the development of the agricultural sector by providing an outlet for the agricultural products, availing opportunities for the smallholders in the rural areas to sell their products for better prices than prices at farm gates, leading to the improvement of their incomes and hence reduction of poverty in the rural areas, as well as activating the border trade between the local traders and traders from neighboring countries.

 

– US $ 7 million to the Republic of Cameroon to participate in financing Comprehensive Health Centers Project. The loan will be repaid in 30 years, including a grace period of 10 years, and at an annual interest rate of 1%. The project aims at providing health services to all the people in the project area and contributes to the social development and poverty alleviation.

– US $ 6 million, to the Kingdom of Lesotho to participate in financing the Project of the Construction of Infrastructure and Industrial Shells at “Tikoe”. The objective of the project is to contribute towards the economic development of the country, through providing the industrial space to attract industrialist to place their ventures in Lesotho. Also, it will help in the provision of work opportunities; increase the income of the country, and the transfer of technology. The loan will be repaid in 25 years, including a grace period of 5 years, and at an annual interest rate of 2%.

– US $ 5 million, a Line of Credit to the Development Bank of Central African States. The Line of Credit aims at contributing to the development of the private sector in the Republic of Congo to eliminate poverty and improve living conditions through availing credits to finance industrial, agricultural, fishing and services projects which will help achieving the predominant development in the Republic of Congo. The loan will be repaid in 12 years, including a grace period of 5 years, and at an annual interest rate of 4%.

H.E. Mr. Abdelaziz KHELEF, Director General signed for BADEA while the beneficiary recipients’ countries were represented by: –

– H.E. Mme. Syda Bbumba, Minister of Finance, Planning and Economic Development for the Republic of Uganda.

– H.E. Mr. Mohamadou Labarang, Ambassador of the Republic of Cameroon to Egypt.

– H.E. Mr. Thabo Khasipe, Ambassador of the Kingdom of Lesotho to Egypt.

– H.E. Mr. Anicet-Georges Dologuélé, President of the Development Bank of Central African States for the Bank.

It is worth noting that BADEA’s total commitments to these three beneficiary countries amounted to about US$ 282.347 million, by the end of June 2009.

The total BADEA’s commitments for the 43 African beneficiary countries during the period March 1975 June 2009, stands at US$ 3 682 807 million, to finance projects and technical assistance operations and the funds allocated through Heavily Indebted Poor Countries Initiative (HIPC).

SOURCE 

Arab Bank for Economic Development in Africa (BADEA)


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