The Egyptian parliament has approved loan of $3.7 billion from France to fund its arms acquisition.
The funds will go into modernizing the Egyptian Air Force and Navy and to induct French weapon systems in the coming years.
According to a parliamentary report earlier this month, the agreement is between Egypt’s defense ministry and a number of French banks led by Credit Agricole for Companies and Investment, Egyptian Quwa news daily reported Monday.
“These banks will provide a cash loan of 3375.54 million euros, representing 60 percent of the value of French military equipment that will be delivered to Egypt,” the report stated.
The total value of this equipment is estimated at 5626 million euros, with Egypt to pay the remaining 40 per cent,” the report said.
Egyptian Air Force ordered 24 Dassault Rafale multi-role fighters along with advanced air-to-air and air-to-ground munitions in February 2015. The first three Rafale fighters have already been delivered by France in July 2015. The total value of the deal amounted to $6 billion.
The Egyptian Navy has ordered a DCNS FREMM multi-mission frigate and four Gowind 2500 corvettes/light frigates. Delivery is set to start later this year and be completed by the end of 2017. Egypt also acquired two Mistral-class aircraft carriers from France in 2015.