The Egyptian government will allocate $5 billion to support the budget from European Union funding amounting to $7.8 billion.
Egyptian Minister of International Cooperation, Rania Al-Mashat, revealed that her country will receive a loan worth $400 million from the United Kingdom over the next two years. To support the budget General state.
Expectations indicate that the first installment of $200 million will be received next July, in conjunction with receiving a payment of $500 million from the World Bank, as part of a broader three-year financing package worth $6 billion.
The second installment of the loan to support Egypt’s budget
Egypt will receive a second and final payment of $200 million from the United Kingdom in the next fiscal year, to support the budget, also coinciding with the arrival of another tranche from the World Bank worth $500 million, according to what Al-Mashat told Bloomberg.
The Egyptian state’s public treasury is awaiting the arrival of funding after obtaining the green light from the House of Representatives.
Also, looking forward Egyptian Ministry of International Cooperation, also to secure financing from the Asian Infrastructure Investment Bank, and talks with the bank regarding supporting the Egyptian budget may begin soon, according to what Al-Mashat revealed to the news platform.
This indicates that Egypt mobilized $57 billion Of funding from global institutions and regional allies to support the economy.
Al-Mashat also referred to the debt swap deal that Egypt signed with China in October 2023, worth $100 million.
5 billion from the European Union to support the budget
She confirmed that the government will allocate $5 billion to support the budget from European Union funding amounting to $7.8 billion.
Furthermore, Egypt will direct half of the World Bank’s three-year financing worth $6 billion to private sector projects through the International Finance Corporation.
Of the remaining amount, $1.5 billion will be allocated to support the budget and government development projects.
A new tranche of the IMF loan arrives
Egypt obtained a second tranche worth $820 million from the $8 billion loan program with…International Monetary Fund According to statements reported by Al-Youm websites from unnamed sources.
It is expected that Egypt will receive the third tranche in the summer after the Fund completes its third review of the financing facility.
The next payments will be disbursed at $1.3 billion each, after reviews conducted by the Fund every six months until the program ends in the fall of 2026.
Late last March, the IMF Board of Directors approved a $5 billion expansion of the financing program and completed the long-awaited first and second reviews.
He also agreed to allow Egypt to immediately withdraw $820 million from the program, with a total value of $8 billion, at the beginning of this month.
Egypt also received a pledge from the European Union to provide one billion euros ($1.07 billion) in short-term financial aid to support the stability of the country’s economy.
Egypt’s foreign debts increased by about $3.5 billion in the last quarter of 2023 to reach $168 billion, according to the latest data published by the Egyptian Ministry of Planning on its website.
