CAIRO: Egypt's external debt is at a safe level, as it was evaluated by the World Bank and the International Monetary Fund (IMF), said Egyptian Minister of Planning and International Cooperation Fayza Aboul Naga. At the joint meeting of the World Bank and IMF, the Egyptian delegation held a series of meetings with World Bank chief Robert Zoellick, IMF CEO Christine Lagard, and IMF officials responsible for the Middle East and North Africa. IMF officials understood the Egyptian point of view about Egypt's refusal to accept loans from the World Bank and IMF. There are two principal types of loans: loans to fund deficits, and loans for investment portfolios. World Bank delegations will visit Egypt to study future projects and technical cooperation, said Aboul Naga. She added that the foreign share of funding for the Ministry of Electricity's five-year plan has been completed by World Bank funding. Aboul Naga noted that power stations cost 8 million EGP (U.S. $1.34 million) each. The World Bank agreed to fund the Kom Ombo solar power plant. Amid the high price of wheat worldwide, Aboul Naga said the meetings focused on agriculture investments and their relation to food security. She pointed out that Egypt is largest wheat importer worldwide, highlighting the importance of wheat production. The Egyptian delegation also attended meetings on the European debt crisis, according to Aboul Naga, who noted that the global financial situation could place a big burden on the developing countries. Aboul Naga said Japan would grant Egypt a U.S. $1.2 billion (7.2 billion EGP) loan to finance a fourth subway line. She explained the approval for the loan was agreed upon at the joint meeting of the World Bank and International Monetary Fund in Washington D.C. The loan bears an interest rate of 2 percent, to be paid over 40 years, and a grace period of ten years. Aboul Naga said the lenient conditions made it more of a grant than a loan. As for foreign funding to unregistered non-governmental organizations (NGOs), Aboul Naga said funding under the pretense of parliamentary elections is unacceptable, as it completely opposes all laws and the state's sovereignty. A fact-finding committee has been formed to investigate foreign funding, and a report about these funds has been referred to the groups that would be investigated, according to Aboul Naga. She said the report includes all names of the non-government organizations that have received foreign funds without government permission. She also revealed the Ministry of Planning has official programs to fund more than 30,000 NGOs to reach Egyptian rural communities. Law allows funding from foreign bodies to NGOs but the Ministry of Solidarity and Social Justice should be informed first to know the objectives behind these funds. In related story, Aboul Naga said the U.S. and Egypt are still mulling President Obama's financial aid to Egypt. The Minister also announced that Egypt has been chosen to be the second deputy of the IMF's 24-member committee, to pave the way for Egypt's chairmanship in 2014. Meanwhile, Aboul Naga expressed her trust that Egyptian Youth would make Egypt one of the most innovative countries all over the world.
