Withdrawal Application Procedure

Public Sector

Prior to any loan withdrawals, the following requirements should be met:

1. The Loan Agreement has to be declared effective.
2. The borrower has to send the Arab Fund the necessary documents delegating one or more people to sign the Withdrawal Application Forms.
3. The beneficiary has to provide the Arab Fund with copies of the signed contracts that will be financed by the loan agreement.

Loan withdrawals can occur under any of the following conditions:

Case1: where the Fund re-imburses the beneficiary for money they have already paid to a contractor.
Case 2: where the Fund directly pays the contractor according to invoices approved by the beneficiary or his designate.
Case 3: where the Fund issues an agreement to reimburse the beneficiary.

For more details on the procedures for withdrawal of the loans, please download the "Withdrawal Application Procedure" document under Publications.

Private Sector

Before any withdrawals are made from a Loan, the following requirements have to be met:

1.The Loan Agreement has to be signed by both parties.
2.The Borrower has to satisfy all conditions precedent to first disbursement set forth in the Loan Agreement and furnish to Arab Fund all required documents and certifications.
3.The Borrower should reaffirm the continuing validity and observance of all representations, covenants and undertakings given by the Borrower under the Loan Agreement, as at the date of the relevant disbursement.
4.The Borrower has to furnish to the Arab Fund a formed document evidencing the authority of the person or persons who sign withdrawal applications, together with specimen of their signatures duly authenticated by the representative of the Borrower in the Loan Agreement.
5.The Borrower has to provide the Arab Fund with copies of all signed contracts and purchase orders eligible to be financed by the Loan Agreement.

Loan withdrawals can occur under any of the following conditions:

Case1:where the Fund re-imburses the beneficiary for payments that he has already made to a contractor, supplier, or consultant.
Case 2:where the Fund directly pays the contractor according to invoices approved by the beneficiary or his designated representative, in settlement of outstanding amounts due for payment.
Case 3:where the Fund issues an Agreement to reimburse the beneficiary bank at which a letter of credit has been opened by the Borrower in respect of eligible payments under a contract financed under Loan Agreements.

For more details on the procedures for withdrawal of the loans, please download the "Withdrawal Application Procedure" document under Publications.

Grant Withdrawal Application Procedure

Before any withdrawals are made from a grant, the Letter of Understanding relating to the grant must be signed by the Arab Fund and countersigned by the beneficiary, and all prerequisite set forth in the Letter should have been met.

In most cases, the Fund directly pays the contractor (or consultant) according to invoices approved by the beneficiary or his designate, or establishes for payment of the proceeds of the Grant in installments according to the progress of implementation of the activity financed by the Grant

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