Financing agreements for the Egyptian government continue after the International Monetary Fund approves a loan to Cairo (Reuters)

The World Bank Group said on Monday that it intends to provide more than $6 billion to Egypt over the next three years, with $3 billion going to government programs, and the same amount to support the private sector.

These amounts will be approved after the approval of the Group's Board of Executive Directors.

According to a statement by the World Bank, a copy of which was received by Al Jazeera Net, these programs will focus on increasing opportunities for private sector participation in economic activity, especially through the government proposals program.

3 pillars

He stated that the development policy financing program, which is being discussed, depends on three main pillars:

  • Enhancing economic competitiveness and improving the business environment.

  • Strengthening macroeconomic resilience.

  • Support the green transition.

According to the bank's statement, the planned development policy financing loan will help the government implement the state ownership policy and reforms that ensure equal opportunities in support of private sector growth.

This program, which includes knowledge and financing, comes under the umbrella of the strategic partnership framework with Egypt for the years (2023-2027), which was approved by the Board of Executive Directors in March 2023.

The value of the World Bank Group's current portfolio of operations, programs and projects in Egypt exceeds $8 billion, including $6 billion from the International Bank for Reconstruction and Development, $1.9 billion from the International Finance Corporation, and $0.5 billion from the Multilateral Investment Guarantee Agency.

European Commission President Ursula von der Leyen (center) announced yesterday a huge financial package to Egypt (French)

EU package

Yesterday, Sunday, the European Union agreed to provide a financial package to Egypt worth 7.4 billion euros ($8.06 billion), according to what was announced by European Commission President Ursula von der Leyen.

The announcement came during an Egyptian-European summit in Cairo, which included, in addition to Egyptian President Abdel Fattah El-Sisi, the President of the European Union Commission, the Prime Minister of Belgium, the current President of the European Union, and the heads of state and government of Cyprus, Italy, Greece, and Austria.

European financing for Egypt includes soft loans worth 5 billion euros ($5.44 billion), investments worth 1.8 billion euros ($1.96 billion), and grants worth 600 million euros ($653 million), including 200 million euros ($217.7 million) to deal with problems. Immigration, according to Reuters, citing a summary published by the European Union.

This month, Egypt reached an agreement with the International Monetary Fund to increase a loan program to $8 billion, hours after its central bank liberalized the exchange rate of the pound and raised interest rates by 600 basis points, in an attempt to achieve stability in the economy.

Moreover, Egypt has guaranteed another loan worth $1.2 billion for environmental sustainability, making the total value of the Fund's loan exceeding $9 billion, the Egyptian government and Fund officials stated.

The announcement on February 23 that the UAE sovereign fund would pump $35 billion within two months, as part of an investment deal to develop the city of Ras El Hekma on the northern coast of Egypt, eased the pressure on the Egyptian pound in the parallel market before the step to lower the exchange rate.

Source: Al Jazeera + agencies