Egypt: WB greenlights $1.15-billion loan to back economic reforms

The World Bank (WB) has granted Egypt a $1.15-billion loan, the third of the three annual loans signed up for by the North African country in its drive to conduct economic reforms.

Egypt has signed up with the World Bank for three annual loans namely Fiscal Consolidation, Sustainable Energy, and Competitiveness Development Policy Financing, for an estimate of $3.15 billion. The agreement with the World Bank covers the 2015-2017 period.

The $1.15-billion loan will support Egypt’s inclusive reforms oriented towards the increase in job creation, ensure energy security, strengthen public finances, and enhance business competitiveness, especially for micro, small and medium-sized businesses.

The release of the loan was made possible with the support of foreign partners namely the African Development Bank (AfdB) and the United Kingdom (UK).

The AfdB has pledged to provide parallel $500 million-assistance while UK made available $150 million as guarantee to expand the loan amount to $1.15 billion, reports say.

Egypt’s economy has been facing difficulties and growth has been sluggish since the 2011 revolution, which swept away autocratic ruler Hosni Mubarak.

The World Bank has stood by the Egyptian government through financing several programs and projects to reduce poverty and boost shared prosperity.

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