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.
