WASHINGTON, D.C., Nov. 24 -- The International
Finance Corporation (IFC), acting on behalf of the Commission of the European
Communities, has agreed to invest US$1.1 million (or up to ECU 1 million)
in the International Egyptian Investments Limited fund, the first investment
fund for Egypt to be placed with overseas investors. The International
Egyptian Investments Limited fund will invest in Egyptian industrial and
commercial companies that are expanding and diversifying. It will also
invest selectively in companies privatized by the Egyptian government.
The IFC investment will be funded by a European Community equity line of
up to ECU 5 million, established in May 1993. The equity line is designed
to encourage companies in the European Community to increase their investment
and involvement in developing economies. Mr. Makarand Dehejia, IFC Vice
President, who signed the International Egyptian Investments Limited agreement
on behalf of the European Community, said "through this investment,
the European Commu
nity equity line is fulfilling its principal purpose, which is to foster
the growth of small and medium-sized enterprises in the developing world.
The equity line is also a financial incentive to EC companies to increase
their investments in newly privatized Egyptian enterprises. We are happy
to collaborate in this with the European Community." IFC is the private
sector arm of the World Bank Group and the largest source of multilateral
financing for private sector projects in developing countries.