World Bank signs $1.15bn loan with Egypt

The World Bank loan is the last in a three-part package worth $3.15 billion. (Reuters)
Updated 09 December 2017

World Bank signs $1.15bn loan with Egypt

SHARM EL-SHEIKH: The World Bank on Friday signed a $1.15 billion loan with the Egyptian government, a final tranche of funds to support economic reforms in the country, the international lender said.
The deal was sealed on the sidelines of the “Africa 2017” investment conference, which President Abdel Fattah El-Sisi inaugurated Friday afternoon in the Red Sea resort town of Sharm El-Sheikh in Sinai.
The loans are provided to support “Egypt’s home-grown reform program aimed at powering job creation, ensuring energy security, strengthening public finances, and enhancing business competitiveness,” the World Bank said in a statement.
The loan is the last in a three-part package worth a total of $3.15 billion, the World Bank said.
The International Monetary Fund is also currently in the process of disbursing the latest instalment of a $12-billion loan it agreed with Egypt in November 2016 to support its economic reforms.
In order to obtain the IMF’s approval for the loan, Cairo has implemented a set of drastic reforms, adopting a value-added tax, cutting energy subsidies and floating the pound.
After the authorities implemented those measures, the Egyptian pound lost about half its value, and Egypt’s rate of inflation spiked.
Since the 2011 revolt that toppled former president Hosni Mubarak, the economy of Arab world’s most populous country has received multiple shocks caused by political instability and security issues.
— AFP


Japan’s export credit agency to lend $2 billion to Nissan for US sales financing

Updated 40 min 7 sec ago

Japan’s export credit agency to lend $2 billion to Nissan for US sales financing

  • The money should help the Japanese company sell cars in the world’s second-biggest automarket after China

TOKYO: Japan’s state-owned export credit agency has agreed to give Nissan Motor Co. up to $2 billion as part of a credit agreement to help it finance car sales in the United States.
The money is part of a $4.1 billion credit agreement for Nissan Motor Acceptance Corporation, a unit of Nissan North America, Japan Bank of International Cooperation (JBIC) said in a press release on Wednesday.
The money should help the Japanese company sell cars in the world’s second-biggest automarket after China by allowing it to provide customers with loans that they can repay in monthly instalments, the export credit agency added in the statement.
The United States “is an important market for Japanese automobile manufacturers. Sales finance has become an important tool in business strategy,” JBIC said.
“This case provides financial support for Nissan’s overseas business development,” it added.
JBIC has provided loans for overseas sales financing to other automakers, including a $78 million October agreement with Honda Motor Co. in Brazil, and one in September for Toyota Motor Corp. in South Africa. JBIC did not disclose the amount for that deal.
The latest agreement with Nissan is more than three times as much as a $582 million loan extended by JBIC in July to help it finance car sales in Mexico.
A JBIC spokesman said the government export credit agency applied the same lending standards as private banks.
Nissan, Japan’s third-largest automaker, is focusing on key markets as it pulls back from the rapid expansion led by ousted Chairman Carlos Ghosn.
It is looking to raise market share with new models in the United States, China and Japan as they rebound from a demand slump triggered by the COVID-19 pandemic.
“We have financing from a variety of different ways and JBIC is one of them,” a Nissan spokeswoman said.
This month, Nissan cut its operating loss forecast for the year to March 2021 by 28 percent, albeit still to a record of about $3.2 billion, helped by a rebound in demand, particularly in China.