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World Bank approves $360m loan for Egypt

October 29, 2021 at 12:56 pm

A man counts Egyptian pounds at currency exchange shop in downtown Cairo on 3 November 2016 [KHALED DESOUKI/AFP/Getty Images]

The World Bank has approved a $360 million development policy financing (DPF) loan to support Egypt’s post-pandemic recovery, the lender said yesterday, Reuters reports.

“To further support achievement of the operation’s development objectives, the Asian Infrastructure Investment Bank is considering parallel financing for the operation of the same amount using the same package of policy reforms agreed with the World Bank,” the bank added in a statement.

The World Bank praised Egypt for its growth during the pandemic in the release. Egypt still faces issues, however. The country’s debt reached a record high in June.

Under the conditions set by a 2016 IMF loan, Egypt promised to reduce fuel subsidies in order to secure $12 billion.

After Egypt floated the Egyptian pound in 2016 its currency halved against the US dollar and inflation rose over 30 per cent. The move has pushed millions further into poverty.

READ: Egypt raises price of subsidised vegetable oil