Egypt: Hungary to fund 700 train carriages in $1B deal

Published at: 03/06/2016 11:40 am

Egypt: Hungary to fund 700 train carriages in $1B deal The deal includes 80 train carriages to be given to the Egyptian National Railways as a gift worth a 100 million euro-grant from Hungary. Egypt and Hungary have signed a letter of intent where Hungary will finance its sale of 700 train carriages to the Arab nation in a deal worth 900 million euros (roughly $1 billion), said the Egyptian international cooperation ministry’s website.       Egypt will repay the financing over 12 years in addition to a five-year grace period at an annual interest rate of 1.26 percent, according to the ministry. The deal’s signing was witnessed by Egyptian President Abdel-Fattah El-Sisi and Hungarian Prime Minister Viktor Orban, who arrived in Cairo along with the Hungarian ministers of foreign affairs and commerce as well as top business executives.   Hungarian companies may join development projects in Egypt The rapid and balanced development of Hungarian-Egyptian relations is in the best interest of both countries. By the end of 2014, Egypt became Hungary’s largest export market in the Arab world, Minister for National Economy Mihály Varga said at a business forum organized for Hungarian and Egyptian enterprises in Cairo. Mihály Varga Minister held bilateral talks with Egypt’s Finance Minister Amr El-Garhy. Egypt and Hungary have nurtured various beneficial relations in various industrial fields, including innovative projects of high-quality technologies, Mihály Varga pointed out. As he stressed, contracts concluded by the two countries have served as a firm basis for the revitalization of development cooperation in recent years. In line with the priorities of the Irinyi Plan, the Government’s major industrial development blueprint, we believe Hungarian-Egyptian industrial relations have the best growth potential mainly in the health industry, the info-communication sector, the food industry and the development of green industry, he added.   There is still huge potential in Hungarian-Egyptian economic cooperation It is in the interest of both countries to foster relations. Those, who want to join the Hungarian Residency Bond Program, will have a unique opportunity to strengthen the Hungarian-Egyptian cooperation. Egypt is the largest Arab country, a state of strategic importance and also a gateway to Africa. The volume of bilateral trade totalled some USD 300 million in 2015, thus Egypt has been the number one market for Hungarian products in the Arab world. The Hungarian Government aims to double this figure within the next years. Hungarian companies can join various large-scale Egyptian investment projects, such as the New Suez Canal, the building of the new capital city as well as road and railroad infrastructure projects, Mihály Varga emphasised. It is also a promising sign that the number of intercompany cooperation projects has been steadily increasing: there are several joint projects in the field, among others, of motor vehicle manufacturing, the chemicals industry and the construction of buildings, he stated.   The Government is paying special attention to options offered by the manufacturing of rail carriages. Hungary’s Ganz Motor Ltd has supplied bogies and spare components in the value of EUR 40 million for Egypt in the past four years.The Minister said opportunities provided by cooperation in the pharmaceuticals and medical industries were also encouraging: a Hungarian-Egyptian joint venture that produces medical equipment – DispoAmecor -- was already established in Ramada City. Cooperation between Hungary’s Rába and EAMCO, an Egyptian partner, also appears mutually beneficial: the two companies signed a letter of intent in September 2015 for the joint production of heavy and special road vehicle running gears. (Photo: Balázs Szecsődi)


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