Egypt accepts World Bank loan criticized by Salafis

The World Bank has agreed to give Egypt a loan of US$200 million to fund the upgrade of sanitation and sewage infrastructure in four governorates in the Nile Delta and Upper Egypt, an official said on Wednesday.

Fayza Abouelnaga, Minister of Planning and International Cooperation, was quoted by state TV as saying that the project which will be funded by the loan aims at creating work opportunities for skilled and non-skilled workers.

She added that the money allocated to the Housing Ministry for water and sanitation projects will also help in providing infrastructure in poor areas.

The loan came under heavy fire when Egypt’s then-ruling military council accepted it but some Salafi MPs criticized it, saying the interest rate was against Sharia.

Abouelnaga said that the interest rate for the loan is 1.29 percent in 28.5 years.

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