France agrees to €1.8 billion financing in Egypt

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France agrees to €1.8 billion financing in Egypt

On Sunday, France had announced that the second-largest economy in 26-member block behind Germany, had agreed to provide Egypt with a lump-sum of €1.8 billion ($2.2 billion) for financing a swathe of projects ranging from Cairo Metro to utility to water management, pointing towards a major development in bilateral cooperation between the long-time allies.

Apart from that, Paris had also said in a statement late in the day that its latest move to finance a series of projects, utterly critical to Egypt’s gross output, would involve a €800 million in concessional Government debts aimed at upgrading Line 1 of Cairo’s metro, the most recent upgrading of which had been dated back to the 1980s, while another €1 billion in financing from the AFD, France’s development agency, would be making up for wide-ranging projects over next five years.

On top of that, during a trip into the Egyptian Capital, the French Finance Minister Bruno Le Maire was quoted saying on Sunday that the feasibility of an additional €2 billion in debts to Cairo to construct a new metro route, called as Line 6, would be negotiated over the next six months.

France approves €1.8 billion in financing for Egypt

In point of fact, latest move from France to pour fresh capitals into a relatively stabilized Egyptian economy, came forth a month after France had announced a fresh €4 billion deal to deliver 30 Dassault warplanes to Egypt by 2024, a move largely viewed as an opportunistic stratagem to strengthen its tie-up with the Government of Abdel Fattah al-Sisi, whose supporters had said on prior occasions that the Government’s crack down on religious activists had helped calm political tensions around Egypt.

France and Egypt forged an alliance back in the 2014s despite their deep differences over human rights alongside other issues after the Government of Abdel Fattah al-Sisi had taken charge.