Egypt receives last World Bank $1.15 bln economic reform payout

Egypt received on Wednesday the third loan worth $1.15 billion from the World Bank, the last in the series of the “Fiscal Consolidation, Sustainable Energy, and Competitiveness Development Policy Financing loans” worth a combined $3.15 billion, Investment and International Cooperation Minister Sahar Nasr announced.

The World Bank’s Board of Executive Directors had approved in December the $1.15 billion development policy financing loan to support Egypt’s economic reform programme.

The loans were approved between 2015 and 2017.

“This loan supports Egypt’s home-grown inclusive reforms aimed to power job creation, ensure energy security, strengthen public finances, and enhance business competitiveness, especially for micro, small, and medium-sized businesses,” according to the World Bank.

Egypt also received $150 million from the Group of Seven (G7) countries, the minister said.

Last week, Egypt received $250 million from Germany and $170 million from France to support Egypt’s economic reform programme.

The latter are part of additional financing agreed upon between Egypt and the International Monetary Fund, as part of the Extended Fund Facility programme to provide a $12 billion loan to Egypt.

Separately, the Cabinet approved on Wednesday the agreement with the African Development Bank for the third $500 million tranche, signed in January, of the $1.5 bn loan to support the economic reform programme.

The agreement with the bank is yet to be approved by the Egyptian House of Representatives.

Source: Ahram online