Lending Conditions.

EGE’s facilities, loans and grants are subject, in addition to the financial conditions, to other conditions in accordance with the common practice in the field of international development financing. Such conditions include, in particular, certain conditions prescribed by EGE’s Charter such as, furnishing EGE with periodic reports on the progress of work on the project financed, affording the opportunity to representatives of EGE to inspect such  work or project, the  undertaking of the Borrower to use the proceeds of the loan exclusively for meeting expenditures on the project. Furthermore, the Charter requires that the loan agreements between EGE and the Borrowers provide, in particular, for the following:

• An agreement that EGE will ONLY disburse funds through its affiliate financial institutions and not direct into a beneficiary or recipient’s banking particulars. Our affiliate financial institutions will transfer funds direct into the beneficiary/recipient’s banking co-ordinates

• An undertaking by the prospective recipient that no other external debt will have priority over the Fund’s loan by means of a lien created on the assets of the Borrower or assets of entities under its control.
• An undertaking that all Fund’s assets and income, which primarily consist of the principal of the loan, the interest and other charges thereon, shall be exempt from all taxes, dues and other levies imposed under the laws of the recipient country.
• An undertaking that the loan, interest and other charges thereon, shall be exempt from any exchange control restrictions.