WASHINGTON: The World Bank is planning to give Egypt over $6 billion in financial assistance over the next three years to help the country meet its development priorities, the Washington-based lender announced Monday.
In a statement, the World Bank Group outlined its commitment to allocate $3 billion for financial support to the Egyptian government’s programs and an additional $3 billion for the private sector, including mobilization, subject to Board approval.
Egypt is grappling with a severe economic crisis characterized by rapid inflation and economic shocks, exacerbated by recent Houthi attacks on shipping in the Red Sea, which have impacted Suez Canal revenues and deprived the country of crucial foreign currency.
World Bank’s Financial Support for Egypt
The World Bank Group, comprising five separate agencies dealing with various issues including concessional lending, investment, and insurance, currently maintains a portfolio worth more than $8 billion with Egypt.
The announcement of financial assistance from the World Bank follows recent pledges of support from allies as well as from the International Monetary Fund (IMF), the World Bank’s sister organization in Washington.
Earlier this month, the IMF approved an expanded $8 billion loan package for Egypt, following the implementation of reforms by Cairo, including transitioning towards a flexible exchange rate and increasing interest rates.
The World Bank’s new programs will focus on enhancing opportunities for private sector participation in the economy, strengthening governance in state-owned enterprises, and improving the efficiency and effectiveness of public resource management, according to the development lender’s statement.
