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Wednesday, 24 November 2021

AIIB approves USD 360 mn loan to support Egypt’s post-covid economy

We’re getting a USD 360 mn loan from AIIB: The Beijing-headquartered Asian Infrastructure Investment Bank (AIIB) has approved a USD 360 mn loan to support Egypt’s post-covid economic recovery, according to a cabinet statement.

The facility matches a separate USD 360 mn loan approved by the World Bank in October, under a larger development policy financing framework (pdf) set by the International Cooperation Ministry in partnership with the two lenders.

Where exactly will the funding go? The combined USD 720 mn will go toward three key policy pillars meant to bolster the second phase of Egypt’s economic reform program: Enhancing macro sustainability, including by improving transparency at state-owned enterprises and stimulating the green transition; boosting private-sector growth; and promoting women’s participation in the workforce. The three-year phase of the reform program focuses on structural reforms designed to support private sector-led growth.

Background: The loan brings our total funding from AIIB to over USD 1 bn, according to the statement. The China-led lender has also invested funds into developing the Abu Qir metro, alongside several European lenders, and a rural sanitation project (also in partnership with the World Bank) connecting unserviced households to running water.

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