Press Release

Ten loan agreements signed by the OPEC Fund

98/2005 September 8, 2005, Vienna, Austria
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Nine agreements for public sector loans totaling US$74.15 million were signed today between the OPEC Fund for International Development and nine developing countries in Africa, Asia and the Caribbean. The financing was extended to Angola, Bangladesh, Chad, Cuba, Djibouti, Haiti, Mali, Tanzania and Vietnam in support of public sector projects in the education, energy, health, multi-sectoral, transportation and water supply and sanitation sectors. In addition, through the Fund’s private sector window, an agreement for a line of credit worth US$5 million was concluded with the Industrial Promotion and Development Company of Bangladesh.

All nine public sector projects will be cofinanced by the concerned governments and by a number of international development institutions, including the Arab Bank for Economic Development in Africa, the Arab Fund for Economic and Social Development, the African Development Fund, the Asian Development Bank, the Inter-American Development Bank, the Islamic Development Bank, the Kuwait Fund for Arab Economic Development, the Saudi Fund for Development and the Social and Economic Development Bank of Venezuela.

The OPEC Fund public sector loans carry interest at rates ranging from 1% to 3% and have a maturity of 20 years, including a grace period of five years.

As of the end of July 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$383.3 million had been extended in support of private sector operations. Total commitments, inclusive of grants and contributions to other international institutions, had reached US$7.7 billion and benefited 119 countries.