Islamabad: A signing ceremony was held in Economic Affairs Division on 12th April 2012 for the Inter-Governmental Agreement between Pakistan and Italy for 57.75 million Euros. It is an Italian soft loan for Citizens Damage Compensation Programme for the flood affectees of 2010. The Agreement was signed by Waqar Masood Khan, Secretary Economic Affairs Division and H.E. Vincenzo Prati, Ambassador of Italy. Country Director World Bank, Mr. Rachid Benmessaoud, was also present on the occasion.
The Italian soft loan has been extended to Pakistan at an interest rate of 0 percent and with a repayment period of 40 years including a grace period of 31 years. Major portion of the loan will be utilized to pay cash to eligible flood affected household of 2010.Disbursements would be quarterly with each disbursement of 15 million euros. Secretary Economic Affairs Division appreciated this support and shared that the assistance would go a long way in alleviating the miseries of floods victims.
He added that signing of the Agreement reflected the confidence reposed by the two sides in each other and hoped that bilateral development cooperation would be even more meaningful in the future. H.E. shared similar views and thanked the Secretary for extending all necessary facilitation for early finalization of Italian assisted programmes.
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