Egypt’s Senate approves $500m IBRD financing

Egypt’s Senate has approved a $500 million agreement with the International Bank for Reconstruction and Development (IBRD) under the Development Policy Financing Programme for Enhancing Resilience, Opportunities, and Prosperity in Egypt, as per a Cabinet statement on Wednesday.

Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, during a Senate sitting, reaffirmed Egypt’s strong partnership with the World Bank, highlighting concessional financing as the most cost-effective external funding method. She noted its lower interest rates, longer repayment periods, and grace periods than other options, aligning with the government’s strategy to extend external debt maturity.

Al-Mashat stated that the financing supports Egypt’s National Structural Reform Programme to boost economic competitiveness, improve the business climate, and advance the green transition. She also noted it complements the one billion euros secured from the European Union last year.

She emphasised the government’s commitment to reducing external borrowing, with the restructured Debt Committee, chaired by Prime Minister Mostafa Madbouly, overseeing adherence to debt ceilings and financial sustainability standards.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama