The World Bank has announced providing $700 million in funding to support Egypt’s budget as part of a previously disclosed three-year program valued at $6 billion.
This latest financial assistance aims to bolster Egypt’s economic policies and development initiatives.
In a statement released on Monday, the World Bank outlined that the funding is designated to support development policies that assist the Egyptian government in several key areas:
The initiative aims to enhance the involvement of the private sector in Egypt’s economic activities, fostering a more competitive and diversified economy.
The funding will help improve the resilience of Egypt’s macroeconomic framework and public finances, ensuring stability and sustainable growth.
The support is also geared towards achieving growth that is considerate of environmental impacts, promoting sustainability in Egypt’s economic development.
The World Bank’s commitment underscores its ongoing support for Egypt’s economic reforms and development agenda, aimed at creating a more robust, inclusive, and environmentally friendly economy.
This funding is a crucial part of the broader $6 billion program announced earlier this year, reflecting the international community’s confidence in Egypt’s economic potential and reform efforts.
The International Monetary Fund (IMF) earlier announced a staff-level agreement with the Arab Republic concerning the third review of its extended loan program.
This agreement will unlock approximately $820 million for Cairo, pending approval from the IMF Executive Board.
The IMF noted that Egypt is making some progress in restoring macroeconomic stability despite the challenging regional environment, including the impacts of the Gaza conflict and disruptions in Red Sea shipping, which have negatively affected Suez Canal revenues.
Vladkova Hollar, the IMF mission chief, stated, “While geopolitical tensions and their impact on Egypt remain challenging, the authorities are continuing their efforts to maintain macroeconomic stability through fiscal discipline, tight monetary policy, and a transition to a flexible exchange rate system.”
