2024-03-18 14:36:49
The World Bank announced on Monday that it intends to provide more than six billion dollars to Egypt over the next three years.
The World Bank Group said that the financial package will direct $3 billion to government programs, and $3 billion to support the private sector.
These amounts are scheduled to be approved following the approval of the Group’s Board of Executive Directors.
This announcement comes a day following Egyptian President Abdel Fattah El-Sisi and European Commission President Ursula von der Leyen, in the presence of the heads of five European countries and governments, signed agreements worth 7.4 billion euros over four years in several areas, including loans, investments, and cooperation in the files of immigration to Europe and combating terrorism. .
European governments have long been concerned regarding the risk of instability in Egypt, which has a population of 106 million and has struggled to obtain foreign currency, as economic difficulties have prompted increasing numbers to emigrate in the past few years.
Inflation is approaching record high levels (35.7 percent in February) and many Egyptians say they are finding it difficult to make ends meet.
However, financial pressures on the government eased last month following Egypt concluded a record deal to pump in Emirati investments, expanded a loan program with the International Monetary Fund, and sharply devalued the currency.
Egypt, which is suffering from a prolonged economic crisis linked to a chronic shortage of foreign currency, surprised the markets in February with a $35 billion real estate and tourism development deal with ADQ Holding Company, one of Abu Dhabi’s sovereign wealth funds.
Shortly following the deal was completed, the country allowed the exchange rate to fall to regarding 50 pounds to the dollar, and raised interest rates by 600 basis points, before agreeing on an expanded $8 billion program with the International Monetary Fund.
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