World Bank plans $6 billion of financial support for Egypt

The World Bank is planning to give Egypt more than $6 billion in financial assistance over the next three years to help it meet its development priorities, the Washington-based lender announced Monday.

"Over the coming three years, the World Bank Group intends to provide more than US$6 billion of support to Egypt," the development lender said in a statement.

This includes "US$3 billion for financial support to Government’s programs and US$3 billion for the private sector (including mobilization) – subject to Board approval," it added.

Egypt, the Arab world's most populous nation, is in dire need of financial help as it weathers a severe economic crisis marked by rapid inflation.

Its economy, which is dominated by military-linked enterprises, has been hit hard by a series of economic shocks, including the recent Huthi attacks on shipping in the Red Sea that have slashed Suez Canal revenues for Egypt and deprived it of a key source of foreign currency.

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The World Bank Group is comprised of five separate agencies which deal with a range of issues including concessional lending, investment, and insurance. Its current portfolio with Egypt is worth more than $8 billion.

Its announcement Monday follows a flurry of recent support pledged by allies including the United Arab Emirates, and also by the International Monetary Fund, the World Bank's sister organization in Washington.

Earlier this month, the IMF agreed an expanded $8 billion loan package after Cairo implemented reforms that included moving towards a flexible exchange rate and hiking interest rates.

The World Bank's new programs will focus on "increasing opportunities for private sector participation in the economy," strengthening the governance of state-owned enterprises and "improving the efficiency and effectiveness of public resource management," the development lender said in a statement.

Source: AFP