Egypt receives third World Bank loan for economic and fiscal reform

7 Dec 17

The World Bank has approved a $1.15bn loan to help Egypt’s economy through reforms to strengthen public finances.

The loan was the last in a series of three annual loans worth a total of $3.15bn to help the country create jobs, ensure energy security and enhance business competitiveness.

It will support fiscal consolidation in Egypt through higher revenue collection, greater moderation of the wage bill, and stronger debt management. Other funding streams will support sustainable energy and competitiveness.

Dr Asad Alam, World Bank country director for Egypt, Yemen and Djibouti, said: “Egypt has shown sustained commitment to implementing inclusive reforms. We are privileged to support the country on its path to achieving its full potential and improving living standards for all Egyptians.”

World Bank has worked closely with the African Development Bank, which has provided $500m, and the UK, which gave an additional $150m to guarantee an expansion of the loan amount to $1.15bn.

The bank’s task team leaders, Ashish Khanna and Ibraham Chowdhury, said Egypt had provided an international benchmark for “comprehensive reforms” in its policies to maximise finance for development, particularly through $17bn of private investment in the energy sector.

The International Monetary Fund announced a $1bn loan to Egypt following the country’s economic reforms. In a statement, the IMF said it “reaffirms the authorities’ commitment to their reform programme supported by the IMF”. 

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