The World Bank plans to give Egypt soft loans of $1.5 billion over the next three years for development in various areas, including health and education, the government daily Al-Akhbar reported Friday, cited by AFP.
During a meeting Thursday with Egyptian Prime Minister Atef Ebeid, World Bank Vice President Jean-Louis Sarbib told him that "the bank will grant soft loans of $1.5 billion over the next three years for the development of rural areas, for health, education, training and information technology."
The World Bank official said that the bank "envisages an association agreement with Egypt and the World Bank in the field of infrastructure," which would also cover "the increase of Egyptian exports to various countries around the world."
A meeting of Egypt's donor countries and institutions is planned for October 29 and 30 in the Red Sea resort of Sharm El Sheikh, under the auspices of the World Bank.
The announcement was made amid reports that the Egyptian pound is expected to weaken to about 4.325 pounds against the dollar by the end of the year and slip to 4.745 by end-2002.
According to Reuters, economist and analyst estimates on Thursday feared the impact of attacks against the United States in September and ongoing retaliation could put renewed pressure on the currency.
Since a devaluation in August, the pound has been broadly steady in exchange bureaux at around 4.2745, the weakest rate allowed. Egypt devalued its currency by about six percent on August 5 amid severe foreign exchange shortages and a burgeoning dollar black market, which now seems to have disappeared, said the agency – Albawaba.com
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