Korea and Egypt Sign MOU for $1 Billion EDCF Loan Support

A commemorative photo taken after the signing of the "Memorandum of Understanding on EDCF Loan Support for 2022-2026" between Bang Moon-kyu, President of the Export-Import Bank, and Rania Al Mashat, Minister of International Cooperation of Egypt. (Photo by Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] The Ministry of Economy and Finance announced on the 21st that South Korea and Egypt have signed a Memorandum of Understanding (MOU) on concessional loan support through the Economic Development Cooperation Fund (EDCF) worth 1 billion dollars (approximately 1.1932 trillion KRW).

The two countries agreed, during the Korea-Egypt summit held on the 20th (local time) in Cairo, Egypt, to provide concessional loans worth 1 billion dollars to Egypt from this year until 2026. The EDCF is a concessional aid fund established in 1987 to support the economic development of developing countries and promote economic cooperation with South Korea.

Previously, in March 2016, the two countries signed a financial package MOU worth a total of 3 billion dollars (EDCF 700 million dollars + export financing 2.3 billion dollars). The Ministry of Economy and Finance explained, "As the EDCF support limit was nearing exhaustion, this summit was an opportunity to increase the EDCF support limit." The cooperation fields include large infrastructure projects such as railroads and subways, eco-friendly energy, and education.

The two countries also agreed to jointly promote promising projects in information and communication technology (ICT), sustainable energy, and higher education in science and technology that can implement Egypt's national development strategy 'Vision 2030' and Korea's New Deal together. They decided to regularize EDCF policy consultations to establish a permanent development cooperation platform.

Following this summit, they will also sign an implementation agreement for the 'Luxor?High Dam Railroad Modernization Project,' approved last September, to support the advancement of Korean companies.

The Ministry of Economy and Finance stated, "Considering the importance of economic cooperation with Egypt, a key partner in Africa and a foothold for cooperation in neighboring Africa and the Middle East, we plan to strengthen EDCF support for Egypt and firmly promote economic cooperation between the two countries."