South Korea and Egypt signed a memorandum of understanding(MOU) to raise the ceiling on Seoul's low-interest loans to the North African country to one billion dollars starting 2022 until 2026.

According to the finance ministry on Friday, the two sides agreed to raise the limit of the Economic Development Cooperation Fund(EDCF) from the previous 700 million dollars for 2016 to 2021.

The preliminary deal was signed on the sidelines of Thursday's summit between President Moon Jae-in and Egyptian President Abdel Fattah el-Sisi in Cairo.

Seoul and Cairo also agreed to seek joint projects in information and communication technology(ICT), sustainable energy, and higher education in science and technology, in line with their national development initiatives.

The EDCF was established in 1987 for South Korea to support economic and social infrastructure projects in developing countries and to promote economic cooperation with those countries.