Egypt Awaits $3 Bln from World Bank, Says Finance Min.

Egypt is anticipating obtaining new $3 billion from the World Bank during the coming period, as Finance Minister Mohamed Maait revealed, Sunday, pointing out that this amount is part of a total package worth $20  billion from several international partners.

Maait added to Bloomberg Al-Sharq that Egypt will not issue new international bonds before the end of the current fiscal year, which ends next June 30.

Maait's statements come after the International Monetary Fund agreed to increase the country's support program from $3 to $8 billion, following the liberalization of the exchange rate and raising interest rates.

At the end of February, Egypt signed a real estate investment deal, under which the ADQ Holding Company acquired the rights to develop the “Ras El Hekma” project for $24 billion with the aim of developing the region, in addition to transferring $11 billion in deposits that will be used to invest in major projects in  areas around the country.

Egypt's total budget deficit worsened during the first eight months of the current fiscal year to 6.7% of GDP by the end of last February, compared to 5% a year ago, according to Maait.

The primary surplus amounted to EGP 193 billion during the same period, compared to EGP 41.8 billion a year ago. (The primary surplus is the difference between the state's revenues and expenditures, without taking into account debt service.)

Egypt's budget deficit in the previous fiscal year 2022/23 was about 6%. The largest Arab country in terms of population is expected to increase the total deficit by more than 7% for the current fiscal year.