Press Release

Fourteen loan agreements signed by the OPEC Fund

144/2005 December 21, Vienna, Austria
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Thirteen agreements for public sector loans totaling US$80.56 million were signed today between the OPEC Fund for International Development and 12 developing countries in Africa, Asia, Latin America and Europe. The financing was extended to Albania, Cape Verde, Ethiopia, Ghana, Grenada, Guyana, Kenya, Madagascar, Mali, Nepal, Nicaragua and Niger in support of public sector projects in the agriculture, energy, health, transportation, water supply and sewerage sectors, as well as for debt relief within the context of the Heavily Indebted Poor Countries (HIPC) Initiative. In addition, through the Fund’s private sector window, an agreement for a line of credit worth US$3 million was concluded with the Clay Industries Company S.A. in Syria.

All thirteen public sector projects will be cofinanced by the concerned governments and by a number of international development institutions, including the African Development Fund, the Asian Development Bank, the Arab Bank for Economic Development in Africa, the International Development Association, the Islamic Development Bank, the Kuwait Fund for Arab Economic Development and the Millennium Challenge Corporation.

The OPEC Fund ordinary public sector loans carry interest at rates ranging from 1% to 2.75%. All loans have a maturity of 20 years, including a grace period of five years.

As of the end of October 2005, cumulative public sector lending of the OPEC Fund, for project and program financing, balance of payments support and HIPC debt relief, stood at US$6.0 billion. A further US$395.3 million had been extended in support of private sector operations. Total commitments, inclusive of grants and contributions to other international institutions, had reached US$7.8 billion and benefited 119 countries.