Continuous Egypt agreement between Paris and Cairo – Les Echos

Continuous Egypt agreement between Paris and Cairo – Les Echos

Cairo, which dropped its claims, wants to buy 24 Rafale and a frigate 5 billion, including armaments. Bercy has agreed to guarantee through Coface, half the sum out payment. Credit Agricole will probably be leading the way the banking pool

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Although caution is, the Rafale is approaching more and more of the Pyramids, and its first export contract. Speaking Sunday at the Grand Rendez-vous I-Tele / The World / Europe 1, Jean-Yves Le Drian conceded. “There are discussions [with Egypt, Ed], they are well advanced. But they are not concluded , said the defense minister. I take great care (…) I hope it will. “

The day is Eric Trappier, CEO of Dassault, which suggested that the Holy Grail was near. “When the temperature rises, I remain very cautious. I can only say that we are close to succeed the first export contract for the Rafale. We have several prospects in the Middle East who are very active. In Egypt, there are still several steps. We conduct in-depth work with India in a very complex issue in terms of industrial assembly ‘, said he was in “Figaro”. Given the usual silence of the manufacturer when it comes to evoke the commercial campaigns of his fighter, one measures the importance of the subject.

The optimism is not overplayed since Paris and Cairo have reached an agreement in principle to contract financing on 24 Rafale and FREMM multi-mission frigate built by DCNS, according to our information. In all, the Egyptians will cost 5 billion euros, a very large sum given the very tight finances. . But Paris has agreed to guarantee a large portion of the bank loan that will adjust

When she arrived there one week, the Egyptian delegation yet camped on its positions: 24 Rafale, two frigates and a very large batch of missiles. In addition to the bill for these purchases – about 7.6 billion – is funding blocking. Cairo asked the French to secure almost 90% of the sum off payment. Unable seen Bercy.

Cairo revises its ambitions downwards

The lines seem to have moved from on tuesday. Aware of their limited resources, the Egyptians finally lowered their claims. The number of Rafale should remain the same, but there will be a frigate. Above all, the number of missiles has been greatly reduced, allowing ultimately lowering the starting 2.6 billion bill.

Most importantly, finally, the Egyptians accepted that Paris via Coface, no guarantee “that” half the 5 billion stake, excluding deposit (usually 15% on large arms contracts). Clearly, Cairo will have to put more of his pocket.

To conclude, we must still overcome some obstacles. Cairo will now have to negotiate a loan from a pool of banks. Crédit Agricole, one major French bank still present in Egypt, will probably be the lead, along with BNP Paribas and Société Générale. The trio will probably try to dilute its risk by using other financial institutions, including Arab.

The wording of the financing agreement should take two or three weeks course no insurmountable obstacle appears. This done, the payment of the deposit can then intervene. It was at that time, ie when Dassault will hit his first check, and only at that point that the Rafale can claim its first reference for export. A little patience …