ALBAWABA - Egypt has obtained $2 billion in budget support from key development partners such as the World Bank, the European Union, the African Development Bank, and South Korea. This was announced by Rania Al-Mashat, the Minister of International Cooperation, according to Egypt Today citing statement by Rania Al-Mashat, Minister of International Cooperation.
The World Bank Group has authorized a $700 million lending package, including $500 million from the World Bank plus $200 million from additional partners. The loan is part of the World Bank's three-year allocation of $6 billion to Egypt's financial and structural reform attempts.
$3 billion of these $6 billion will be given to the government, while $3 billion will be set aside to strengthen the private sector, with a $5 grace period added to the loan's 35-year repayment term. The loan aims to support Egypt's ailing economy, which is still controlled by military-linked firms, which have for years concentrated on cost-intensive infrastructure large-scale initiatives, as reported by AFP.
Egypt also obtained an agreement worth €1 billion ($1.069 billion) with the European Union at the Egyptian-European Investment Conference. This first payment is a portion of a bigger allocation of €5 billion that will be distributed in the second half of 2024.
Stephane Guimbert, World Bank country director for Egypt, Yemen and Djibouti, stated on Monday that “Creating good, sustainable jobs and building resilience to climate change are critical for the current and future prosperity of Egypt's citizens, especially the poor and vulnerable,” adding that “reforms supported by this operation are an important step towards a more sustainable, inclusive economy.”
