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Tuesday, 7 June 2022

Madbouly tells WB execs more financing needed “ASAP”

WB, Madbouly talk financing: Prime Minister Mostafa Madbouly told a delegation of visiting World Bank execs that it was important to continue Egypt’s development policy financing program with the lender as soon as possible given the economic repercussions of war in Ukraine, according to a cabinet statement. We have completed all the requirements to advance the loan program and are waiting on the WB for updates.

What loan program? The World Bank last October approved a USD 360 mn facility to support the Egyptian economy as it recovers from the covid pandemic. It’s not clear if Madbouly was referring to disbursals within that program or a fresh round of financing.

REMEMBER- The WB is here for meetings with Egyptian officials on the potential support the bank could offer (including a possible USD 500 mn for food security) to help us get through the volatility caused by the Russian invasion of Ukraine.

CBE tourism soft loans scheme extended to telecom costs: Tourism companies are now able to access the Central Bank of Egypt’s (CBE) soft loans scheme to fund telecom maintenance and upgrade costs, according to a central bank circular (pdf) out yesterday. The program allows businesses to access finance at a reduced 8% interest rate and was introduced in 2020 to support the tourism sector.

The CBE’s loan program for middle-income homeowners is also being extended to cover maintenance deposits, it said in a separate circular (pdf).

Other things we’re keeping an eye on this morning:

  • Galina Holding inked an MoU with the Islamic Development Bank’s private sector development arm which could see it provide finance to help the agrifood player expand its production capacity. (Statement, pdf)
  • GlobalCorp has signed a EGP 450 mn leasing contract with real estate player Mountain View to finance its operations and working capital. (Al Mal)
  • Rusatom Healthcare — the medical arm of Russian state nuclear company Rosatom — signed an MoU with Pharco Pharma to partner on several projects, including the development and production of radiopharmaceuticals. (Statement)

Correction: 7th June, 2022

A previous version of this article incorrectly stated that telecoms companies would have access to the Central Bank of Egypt’s soft loans scheme for tourism companies.

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