DEBT WATCH- Egypt could seal the first USD 250 mn tranche of a USD 500 mn loan from the Japanese International Cooperation Agency (JICA) before the year is out, the local press reports, citing government sources. The first tranche would be used to plug shortfalls in the government’s budget and implement reforms in the electricity sector, among others.

What else is in the pipeline? Negotiations are underway with the French Development Agency (AFD) for an EUR 150 mn loan to be disbursed over two tranches, the first of which should be finalized in 1Q2021, the sources said. This comes as part of a commitment made by AFD last year to put EUR 1 bn into projects in Egypt over a four-year period. JICA has recently stepped up its activity in Egypt, providing finance for a number of projects including the construction of Cairo’s new metro line, a solar plant in Hurghada, and an expansion of a children’s hospital, as well as pledging USD 250 mn to support the government’s universal healthcare scheme.