The Egyptian Ministry of Finance announced on Sunday that it has arranged a new developmental financing amounting to $500 million.
This funding is earmarked for projects in the health and education sectors.
The ministry detailed in its statement that this financing was secured through a new partnership involving Deutsche Bank, Bahrain-based ABC Bank, and the Kuwait-based Arab Investment and Export Credit Guarantee Corporation (Dhaman).
According to the ministry’s statement, this marks the first time developmental financing has been arranged with a guarantee from a multilateral financial institution. This move signals the growing importance of international institutions in providing low-cost financing.
Dr. Mohamed Maait, Egypt’s Finance Minister, had previously affirmed that despite geopolitical tensions, Egypt remains capable of meeting its external financing needs, reflecting the economy’s resilience in facing internal and external challenges.
Maait highlighted that the government has identified sources for meeting its external financing needs till the end of the current fiscal year, estimated at around $4 billion.
He emphasized the government’s focus on diversifying international markets, citing recent successes like re-entering the Japanese markets with a second issuance of Samurai bonds worth approximately half a billion dollars and issuing sustainable bonds in the Chinese “Panda” market, allocated for financing projects worth about 3.5 billion Chinese yuan.
It is noteworthy that the Egyptian government has repaid $52 billion in external obligations over the past two years, despite severe global economic challenges.
This funding initiative represents a significant step in bolstering Egypt’s health and education sectors and demonstrates the government’s commitment to sustainable development amid global economic fluctuations.
The sale of seven historic hotels by Egypt’s Sovereign Fund has garnered significant attention, both for its potential impact on the country’s economy and for the historical importance of the properties involved.
Ayman Soliman, the executive director of the Sovereign Wealth Fund of Egypt, has announced the completion of this sale by the end of the year.
