The Madbouly government has secured a new JPY 35 bn loan — equivalent to USD 220 mn — from Japan to shore up the budget and grease the wheels of private-sector reform, according to a loan agreement reviewed by EnterpriseAM.

The loan carries a 1.5% interest rate and a 20-year repayment schedule, including a 10-year grace period. In exchange for the concessional funds, the government has committed to a reform program designed to diversify the economic base and reduce the state’s footprint.

Why it matters: As commercial borrowing costs are still elevated, the government is leaning on bilateral partners to find fiscal breathing room while meeting foreign currency requirements. By tying the funds to private-sector benchmarks, the agreement signals a continued push to move the needle on structural reforms that have often stalled at the implementation phase.

AND- Parliament greenlit a KWD 300k grant from the Arab Fund for Economic and Social Development to help finance a feasibility study for increasing the capacity of the Egypt-Jordan interconnection line. The move to increase the current 400 MW capacity to 2 GW is meant to serve as a vital part of the Eight Country Interconnection Project connecting Egypt, Iraq, Jordan, Libya, Lebanon, Palestine, Syria, and Turkey under the Arab Interconnection Project.

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