World Bank pledges $3b support to Egypt – minister

The World Bank (WB) has pledged $3 billion in support of Egypt following the country’s successful negotiation of an expanded International Monetary Fund (IMF) programme, Bloomberg reported on Sunday, citing Finance Minister Mohamed Maait.

Egypt is also anticipating a support package from the European Union (EU), with more details expected soon. This aid comes after the recent decision by the central bank to float the currency, accompanied by a significant interest rate hike of 600 basis points.

The currency float led to a 38 per cent devaluation of the Egyptian pound against the dollar, prompting the IMF to increase its loan programme from $3 billion to $8 billion.

Additionally, Egypt secured a $35 billion investment deal with the United Arab Emirates (UAE), which is crucial in addressing the country’s long-standing foreign currency shortage.

Maait mentioned that the IMF will disburse the initial funding instalment once its board approves the revised program.