The International Cooperation Ministry is targeting USD 8 bn in foreign funding over the next three years, International Cooperation Minister Sahar Nasr tells Al Borsa. The aim of the program is to secure funds that, together with the USD 12 bn IMF facility, will help the state plug its funding gap.The ministry is looking to secure a USD 500 mn development loan for Upper Egypt from the World Bank and IMF during the fall talks in October, she added. Nasr reiterated that she will resume talks with the World Bank over the USD 1 bn first tranche of the USD 3 bn agreement, said disbursement is contingent on the House of Representatives ratifying the agreement. The ministry is also finalizing a funding agreement with the EU and a debt-swap agreement with Italy, said Nasr refusing to elaborate on their details.

This comes as the government is redoubling efforts to secure USD 5 bn in funding and pledged deposits from regional allies, a government source tells Al Masry Al Youm, including a USD 1 bn deposit promised by the UAE that is yet to arrive. The source said it is unlikely Egypt will see any GCC funds flow into the state’s coffers before next year. As we noted on Monday, reports had emerged that the IMF is requiring Egypt to secure USD 5-6 bn in bilateral assistance during the first year of reforms before it can obtain the first tranche from the IMF. The Finance Ministry subsequently denied the reports, but IMF mission chief in Egypt Chris Jarvis has made it clear the institution is working with Egypt to line up the funding in the coming period.