AFESD Activities
Lending Terms
Based on Resolution No. (20) for the year 2024 of the Board of Directors of the Arab Fund regarding the lending terms applicable to loans granted to Member countries, and Resolution No. (20) for the year 2021 regarding the guiding framework for allocating the Arab Fund’s available resources for lending activities in Member countries, the lending terms have been modified according to loan durations, country groups, and the nature of the project. Interest rates on green projects (environmentally friendly projects and those related to climate change) are applied at lower rates than those applied to other projects, in accordance with the classification standards followed by the Arab Fund.
| Classification | Country | 10 Years | 15 Years | 20 Years | 25-30 Years |
|---|---|---|---|---|---|
| Low Income | SOMALIA | 2.25% | 2.50% | 2.75% | 3.00% |
| SUDAN | 2.25% | 2.50% | 2.75% | 3.00% | |
| SYRIA | 2.25% | 2.50% | 2.75% | 3.00% | |
| YEMEN | 2.25% | 2.50% | 2.75% | 3.00% | |
| Medium Income | COMOROS | 2.75% | 3.00% | 3.50% | 3.75% |
| DJIBOUTI | 2.75% | 3.00% | 3.50% | 3.75% | |
| EGYPT | 2.75% | 3.00% | 3.50% | 3.75% | |
| JORDAN | 2.75% | 3.00% | 3.50% | 3.75% | |
| LEBANON | 2.75% | 3.00% | 3.50% | 3.75% | |
| MAURITANIA | 2.75% | 3.00% | 3.50% | 3.75% | |
| MOROCCO | 2.75% | 3.00% | 3.50% | 3.75% | |
| PALESTINE | 2.75% | 3.00% | 3.50% | 3.75% | |
| TUNISIA | 2.75% | 3.00% | 3.50% | 3.75% | |
| Medium to High Income | Algeria | 3.25% | 3.50% | 4.00% | 4.25% |
| IRAQ | 3.25% | 3.50% | 4.00% | 4.25% | |
| LIBYA | 3.25% | 3.50% | 4.00% | 4.25% | |
| High Income | BAHRAIN | 3.75% | 4.00% | 4.50% | 4.75% |
| OMAN | 3.75% | 4.00% | 4.50% | 4.75% |
Regarding green projects and according to the approved criteria for their classification by the Arab Fund, a 0.25% discount is applied to the interest rate for all tiers.
Private sector projects are priced within mixed projects (public and private sectors) at an interest rate of no less than 4.75% for all country tiers, with a repayment period of up to 10 years and a grace period based on the project implementation period, not exceeding two years.
The country group classifications are based on the World Bank classifications, which are determined by per capita gross national income.
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