Egypt secures USD2B in concessional financing for budget boosts, structural reforms

2024-06-25 05:58:58

(MENAFN) The Egyptian Ministry of International Cooperation announced on Monday that the country has secured approximately two billion dollars in soft financing from various international financial institutions. This funding aims to support Egypt's general budget and stimulate structural reform policies, with a particular focus on empowering the private sector.

The financing package includes USD700 million approved by the World Bank's Board of Directors as part of the development policy financing program, which has a total value of USD6 billion. Additionally, Egypt is set to receive one billion euros (USD1.069 billion) from the European Union, which will be signed during the upcoming Egyptian-European investment conference under the framework of the “Macroeconomic Support and Budget Deficit Support Mechanism.” Further, the African Development Bank (AFDB) is providing soft development financing worth USD131 million, while the Korean Economic Development Cooperation Fund (EDCF) is contributing USD100 million, with the related procedures currently being finalized.

Rania Al-Mashat, Egypt's Minister of International Cooperation, emphasized that these funds are intended to mobilize support for the government's program aimed at implementing reform and structural policies. The financing will help sustain the state’s general budget, enhance macroeconomic flexibility and competitiveness, and promote the objectives outlined in the state ownership policy document.

The Ministry also mentioned ongoing negotiations with the Asian Infrastructure Investment Bank to secure an additional USD300 million. Preparatory work with the African Development Bank mission, which took place in mid-June, is setting the stage for the second phase of the program aimed at supporting private sector development and economic diversification. This phase is crucial for providing the necessary financing to continue comprehensive economic reform efforts in Egypt.

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