Foreign aid and loans

   First: Foreign Aid

          It includes all international transfers are conducted in accordance with the terms and rules of soft away from the financial rules and foundations and commercial mainstream.

          Aid diveded to:

   1-Grants: Each cash transfers and in-kind provided by some countries to others, whether economic or humanitarian considerations, which are not Non-refundable transfers.

   2-Concessional assistance: Soft loans are payable within the scope of the external debt, and are in accordance with the rules and conditions easier than their counterparts in the international financial markets, where less than interest rates, or in terms of the length of the repayment period.

    Second: Foreign Loans

         Is a committed transaction whereby the borrower to repay the loan and its burden at a certain time without any participation from the lender to the borrower in the risks borne, and we distinguish between the two types of loans:

    1-General loans: loans are granted by foreign governments on a commercial basis, whether the recipient of the loan, are governments or any other agency.

    2-Private loans: are loans received by the state from individuals or foreign private bodies, since the mid-sixties were private banks in developed countries have become the main donor for most international loans, then the global debt crisis came early eighties to contribute to the change in foreign capital flows components to developing countries in particular, so that diminished the size of bank loans while increased volume of foreign investment.