Press Release

OPEC Fund extends loans totaling over US$100 million

25/2006 March 21, 2006, Vienna, Austria
Press inquiries:

Eight agreements for public sector loans totaling more than US$90 million were signed today between the OPEC Fund for International Development and eight developing countries in Africa, Asia and Latin America and the Caribbean. The financing was extended to Angola, Azerbaijan, Belize, Egypt, Laos, Morocco, Tajikistan and Tunisia in support of public sector projects in the agriculture, education, energy, health, multi-sectoral and water supply and sewerage sectors. In addition, through the Fund’s private sector window, three agreements were signed: a line of credit worth US$5 million with DFCU Ltd. of Uganda; a loan of €4 million to BSA Ciment S.A. of Mauritania; and, a US$4 million loan with the Societe d’Elaboration des Produits Halieutiques S.A. of Mauritania.

All eight public sector projects will be co-financed by the concerned governments and by a number of international development institutions, including the Arab Fund for Economic and Social Development, the Asian Development Bank, the International Fund for Agricultural Development, the Islamic Development Bank, the Kuwait Fund for Arab Economic Development, the Norwegian Agency for Development Cooperation and the Saudi Fund for Development.

The OPEC Fund regular public sector loans carry interest at rates ranging from 1% to 3.5%. All loans have a maturity of 20 years, including a grace period of five years.

As of the end of January 2006, cumulative public sector lending of the OPEC Fund, for project and program financing, balance of payments support and HIPC debt relief, stood at US$6.2 billion. A further US$417.9 million had been approved in support of private sector operations. Total commitments, inclusive of grants and contributions to other international institutions, had reached US$7.9 billion and benefited 119 countries.