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Thursday, 2 June 2016

Egypt, Hungary sign EUR 900 mn letter of intent to finance train carriages, sign MoUs in water, agriculture, military cooperation

Egypt, Hungary in EUR 900 mn rail agreement: Egypt and Hungary signed a letter of intent under which Hungary will finance its sale of 700 train carriages to Egypt, which we reported on yesterday, in an agreement worth EUR 900 mn, according to a statement posted on the International Cooperation Ministry’s website on Wednesday. The financing is set to be repaid over 12 years at an annual interest rate of 1.26% and carries a five-year grace period. The letter of intent, which was signed between the Egyptian ministers of international cooperation, finance and transport and the CEO of the Hungarian Export-Import Bank, also includes a “gift” of 80 train carriages extended to the Egyptian National Railways worth an EUR 100 mn grant from Hungary.

Other Egypt-Hungary agreements on agriculture, military cooperation: The two countries signed five MoUs in fields including water resources and agriculture and the Egyptian minister of defence signed an MOU with his Hungarian counterpart to boost military cooperation, according to DNE. The rail agreement was signed in the presence of President Abdel Fattah El Sisi and Hungarian Prime Minister Viktor Orban, who arrived in Cairo on Tuesday, along with the Hungarian ministers of foreign affairs and commerce as well as top business executives, according to Ahram Online.

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