Egypt to receive $1.5B from WB within 48 hours: official source

CAIRO – 5 December 2017: Egypt will receive within 48 hours the last $1.5 billion tranche of the World Bank (WB) development loan with a total value of $3.15 billion, an official source told Egypt Today on Tuesday.

Reuters reported on Tuesday that the WB’s executive board approved a $1.15 billion development policy loan for Egypt to support the country’s economic reform programs.
The loan is the last in a series of three annual loans totaling $3.15 billion issued from 2015 to 2017, the World Bank said in a statement.

The $1.15 billion loan, which supports Egyptian economic reforms aiming to create jobs, ensure energy security, strengthen public finances and enhance business competitiveness, includes financing contributions of $500 million from the World Bank Group, $500 million from the African Development Bank and $150 million from Britain.

During the past few days, Egypt’s foreign reserves, totaling $36.723 by end of November, has fluctuated. The Central Bank of Egypt could pay back $4 billion of a total loan to the Africa export-import bank (Afreximbank) and the $1.2 billion rest of the due is set to be paid off next Thursday, Reuters reported on Tuesday.

The Egyptian government could turn the skeptical outlook of international institutions to positively stable trust. “The Egyptian authorities have embarked on an ambitious reform program and have taken decisive measures aiming to restore macroeconomic stability and sustainable public finances,” the International Monetary Fund (IMF) said in its report on the first review of Egypt’s economic reform program.

Egypt agreed to a three-year $12 billion IMF loan program in November 2016. Finance Minister Amr El Garhy said on Tuesday that Egypt is set to receive its next International Monetary Fund loan ($2 billion) in the third week of December.

The WB announced a $3 billion loan program in financial assistance to Egypt. Afreximbank also injected Egypt with a $5.2 billion loan.

International credit rating agency Standard and Poor's (S&P) upgraded in late November Egypt's outlook to positive from stable, while maintaining Egypt’s sovereign credit rating at B-.

The rating agency said Egypt’s outlook revised to positive on the back of rising reserves and strengthening economic growth.

S&P noted that the positive outlook reflects a potential upgrade over next year “if Egypt continues to implement reforms to support investment and growth.”