Egypt’s parliament approves defence loan agreement with France
Egypt's new parliament voted overwhelmingly in favour of a defence loan agreement with France, aiming to boost the powers of the former country’s armed forces.
A parliamentary report explained that the agreement is between Egypt's defence ministry and a number of French banks led by Credit Agricole for Companies and Investment.
"These banks will provide a cash loan of 3375.54 million euros, representing 60 per cent of the value of French military equipment that will be delivered to Egypt," the report stated.
"The total value of this equipment is estimated at 5625.9 million euros, with Egypt to pay the remaining 40 per cent," the report also revealed.
The loan will be guaranteed by Egypt's finance ministry.
Spokespersons from most political parties in the parliament said that MPs approved the loan agreement, stating that it is be necessary to boost the military powers of Egypt's army.