Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

World Bank Lines Up $6 Billion to Egypt in 3 Years

Mon 18 Mar 2024 | 05:34 PM
World Bank
World Bank
Rana Atef

World Bank said, Monday, that it loan Egypt more than 6 billion dollars in the next 3 years in the light of the current obstacles related to foreign exchange, economic activity, and imports.

The World Bank added that 3 billion dollars will be allocated to governmental programs, while the other 3 billion dollars will be dedicated to support the private sector.

Last week, the International Monetary Fund (IMF) intends to provide about $1.5 billion to Egypt within weeks, within the framework of the loan that was agreed to increase last Wednesday from $3 billion to $8 billion.

The amount will include the first and second review tranches, which were postponed earlier.

Egypt obtained a first tranche worth $350 million from the Fund’s loan in late 2022, and since that time the first and second reviews of the program have been postponed, and disbursement of the remaining tranches was halted until the announcement last Wednesday of raising the value of the loan to $8 billion.

The Egyptian government and the IMF announced that they had reached an agreement at the expert level regarding the two reviews of the 3-year loan program. 

Previously, the CBE raised the interest rate by 600 basis points, bringing its rates on deposits, lending, and the main process at 27.25, 28.25, and 27.75%, respectively. The interest on credit and debit was also raised by 600 basis points to reach 27.75%.

The agreement to develop the Ras El Hekma region with Abu Dhabi Holding Company ADQ contributed to relieving pressure on the Egyptian economy. The deal is considered the largest in the history of Egyptian investment, and is worth about $34 billion from the transfer of an $11 billion Emirati deposit into the pound to be re-injected into development investments in various regions.