World Bank and Egypt sign $1.15 billion loan to boost economy, create jobs
The World Bank and Egypt signed a US$ 1.15 billion loan agreement today to support ongoing reforms that have helped stabilize the economy, mobilized US$17 billion in private investments in the energy sector and enabled the transfer of fiscal resources to social protection programs.
The signing ceremony took place in Sharm El Sheikh, Egypt on the margins of the ‘’Africa 2017’’ investment conference and was attended by Acting Prime Minister of Egypt, Minister Moustafa Madbouly and World Bank Chief Executive Officer, Dr. Kristalina Georgieva. The Minister of Investment and International Cooperation, Dr. Sahar Nasr signed on behalf of Egypt, with Country Director for Egypt, Yemen and Djibouti, Dr. Asad Alam representing the World Bank.
“We welcome the World Bank’s continuous support to the transformational economic reform agenda of the government. This program supports Egypt’s home grown program to help improve its attractiveness for private investment, creating jobs especially for youth and women,” said Dr. Nasr.
The agreement signed today is the last in a series of three annual Fiscal Consolidation, Sustainable Energy, and Competitiveness Development Policy Financing (DPF) loans for a total of US$3.15 billion. The series was designed to support Egypt’s home-grown reform program aimed at powering job creation, ensuring energy security, strengthening public finances, and enhancing business competitiveness, especially for micro, small and medium-sized businesses.
“Egypt has shown sustained commitment to implementing inclusive reforms. We are privileged to support the country on its path to achieving its full potential and improving living standards for all Egyptians,” said Dr. Georgieva.
The World Bank collaborated closely with development partners to ensure coordinated support for Egypt’s reform program, with the US$ 1.15 billion loan including a United Kingdom guarantee for US$150 million.
The DPF was approved by the Executive Board of the World Bank Group on December 5th ,2017. The loan has a 35-year maturity with a grace period of 5 years, so as to spread the repayment period over a longer tenure. The loan carries a variable interest rate of around 1% above London Interbank Offered Rate (LIBOR).
The World Bank currently has a portfolio of 19 projects in Egypt with a total commitment of US$7.8 billion focused on social safety nets, energy, transport, rural water and sanitation, agriculture and irrigation, housing, health care, job creation, and financing for micro and small enterprises.
