World Bank approves a program to finance Egypt with $ 7 bn.

The World Bank Group Boards of Directors approved a new partnership with Egypt that extends until 2027, at a value of $7 bn to support development projects, in partnership with IFC and MIGA, according to Bloomberg Asharq.

The value allocated for the new partnership framework includes one billion dollars annually from International Bank for Reconstruction and Development and $ 2 bn during the entire partnership period from IFC, in addition to guarantees from MIGA, according to the World Bank statement issued today.

Last December, World Bank approved a new development finance of $500 mn for government to support expansion of safety nets and social protection through Takaful and Karama Program.

Today, the bank indicated that the new partnership strategy aims to enhance Egypt's role in achieving regional integration by promoting regional trade and increasing interconnection services in infrastructure, transportation, energy and employment.

The financing  follows the approval of IMF Executive Directors, last December, to extend Egypt with $ 3 bn through a 46-month agreement within the framework of EFF.

Egypt also received an immediate payment of $347 mn, following the Fund's approval of the loan, to help meet balance of payments needs and support the budget.

The fund expected that the agreement would encourage availability of additional financing for Egypt by $ 14 bn from its international and regional partners, including new financing resources from the Gulf Cooperation Council countries and other partners by selling state-owned assets and traditional financing channels from multilateral and bilateral creditors.