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Egypt to get $6bn from World Bank over three years

March 18, 2024 at 4:08 pm

A view of the World Bank building October 5, 2000 in Washington, DC. The World Bank bank lends money to developing countries around the world. [Photo by Per-Anders Pettersson/ Getty Images]

The World Bank said on Monday that it intends to provide more than $6 billion of support to Egypt over the coming three years, Reuters has reported. The North African country has been struggling with a foreign currency crunch that slowed economic activity and led to shortages of imported goods.

According to the bank, $3bn will go towards government programmes, and $3 billion to the private sector, all subject to the group’s board approval.

The support package comes after Egypt devalued its currency earlier this month, to curb record high inflation, following a $35bn deal with UAE sovereign wealth fund ADQ in late February. It also secured an expanded $8bn deal with the International Monetary Fund this month, with the EU announcing a package worth $8.1bn to Egypt on Sunday.

“In support of the government’s development priorities, programmes will focus on increasing opportunities for private sector participation in the economy, including through the government’s Asset Monetisation Programme,” said the World Bank.

Egypt is selling assets to boost the private sector and raise scarce hard currency, setting a target in 2022 to raise $10bn annually over four years through private investment in state assets.

The World Bank said that its current operational portfolio in Egypt is more than $8bn, comprising $6bn from the International Bank for Reconstruction and Development, $1.9bn from the International Finance Corporation, and $500 million from the Multilateral Investment Guarantee Agency.

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