Egypt, Germany sign agreement on debts settlement

"Egypt and Germany are about to sign an agreement, whereby part of Egypt's debts to Germany will go to funding development projects," said planning and International Cooperation Minister Ahmed Darsh.

Emerging from his meeting with the Head of the German side to the German-Egyptian committee preparatory meetings, Darsh said the meeting dealt with promoting economic cooperation between the countries and the issue of the Egyptian debts to Germany.

The same issue has been raised during German Chancellor Gerhard Schroeder's visit to Egypt late October.

Meanwhile, Darsh reviewed with the German delegation the development projects that will be set up in Egypt within the framework of the 2001 German aid programme.

The German Construction Bank for North African States has recently agreed to contribute 30 million German DM in a loan to finding the second stage of the setting up a power generating station in Za'frana, East of Cairo.

The soft loan will be re-paid over 40 years with a ten-year period of grace. The bank is contributing 228 million DM to irrigation projects in Kafr al-Sheikh and Behera Governorates.

Jerusalem

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