Loan agree­ments with WB, ADB move ahead

Business monthly (Egypt) - - IN BRIEF -

De­cem­ber saw progress in two ma­jor, multi-phase fi­nanc­ing agree­ments be­tween Egypt and mul­ti­lat­eral lenders. On Dec. 19, the African Devel­op­ment Bank signed a $500 bil­lion loan for Egypt, the sec­ond tranche of a three-year, $1.5 bil­lion se­ries of loans the bank says is “de­signed to sup­port strong, sus­tain­able and in­clu­sive growth in Egypt by pro­vid­ing a fi­nanc­ing in­cen­tive for re­forms that will help drive fis­cal con­sol­i­da­tion, im­proved gov­er­nance and ef­fi­ciency in the en­ergy sec­tor, and strength­en­ing of the busi­ness op­er­at­ing environment.” Then, in a Dec. 20 meet­ing, the World Bank's ex­ec­u­tive board signed off on the sec­ond $1-bil­lion in­stall­ment of a $3-bil­lion loan for Egypt. The funds are meant to sup­port the govern­ment's eco­nomic re­form agenda, par­tic­u­larly pro­grams fo­cus­ing on job cre­ation and in­creas­ing the com­pet­i­tive­ness of lo­cal busi­nesses. The first tranche ar­rived in Egypt in Septem­ber. “This pro­gram sup­ports our home grown pro­gram to help Egypt re­al­ize its full po­ten­tial and raise the liv­ing stan­dards of all its peo­ple,” said Sa­har Nasr, Egypt’s min­is­ter of in­ter­na­tional co­op­er­a­tion, in a press state­ment. In re­lated news, the In­ter­na­tional Fi­nan­cial Cor­po­ra­tion, the World Bank’s pri­vate-sec­tor arm, pledged up to $2 bil­lion in in­vest­ments in Egypt over the next three years, re­ported state-owned Ahram On­line.

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