Egypt sees $400m in budget support from UK – minister
Egypt is anticipating a $400 million infusion in budget support from the UK over two years, marking the latest contribution to a comprehensive global bailout aimed at bolstering its economy.
Rania Al-Mashat, Egypt’s International Cooperation Minister, revealed in an interview with Bloomberg, that the fund will complement budgetary assistance from the World Bank, forming part of a previously outlined $6 billion, three-year aid package.
Moreover, Mashat disclosed plans to secure the initial instalments of $200 million from the UK and $500 million from the World Bank by July, with equivalent amounts expected in the following financial year pending approval from Egypt’s parliament.
Speaking from Washington, D.C., where she was attending the spring meetings of the International Monetary Fund (IMF) and World Bank, Mashat, who also serves as Egypt’s governor for the two institutions, affirmed, “Once Egypt’s parliament approves this financing, Egypt can get it.”
This commitment underscores sustained international engagement with Egypt following its acquisition of $57 billion in funding from global institutions and regional partners to mitigate the severe economic crisis it faced.
Notably, a significant portion of this assistance stems from a landmark agreement with the United Arab Emirates, announced in February, hailed as Egypt’s largest foreign investment ever.
This agreement facilitated a long-anticipated currency floatation, subsequently unlocking substantial new accords with the IMF, European Union, and other entities.
Mashat also revealed that her ministry had initiated discussions with the Asian Infrastructure Investment Bank, headquartered in Beijing, regarding potential budgetary support, with negotiations expected to commence shortly. However, she refrained from providing further details.
Moreover, Egypt’s debt-swap agreement with China, signed in October and valued at $100 million, enables the country to utilise a portion of its debt to implement mutually agreed-upon development projects.
Additional details provided by the minister include:
Of the EU’s $7.8 billion commitment, $5 billion will be allocated to budgetary support.
Half of the World Bank’s $6 billion financing over three years will be earmarked for private-sector initiatives through the International Finance Corporation (IFC).
The remaining funds will be divided, with $1.5 billion designated for budgetary support and an equal amount allocated for government-led development projects.
