World Bank plans $6 billion of financial support for Egypt

WASHINGTON

The World Bank is planning to give Egypt more than $6 billion in financial assistance over the next three years to help it meet its development priorities, the Washington-based lender has announced 

"Over the coming three years, the World Bank Group intends to provide more than $6 billion of support to Egypt," the development lender said in a statement.

This includes "$3 billion for financial support to government's programs and $3 billion for the private sector (including mobilization) - subject to Board approval," it added.

Egypt, the Arab world's most populous nation, is in dire need of financial help as it weathers a severe economic crisis marked by rapid inflation.

Its economy, which is dominated by military-linked enterprises, has been hit hard by a series of economic shocks, including the recent Huthi attacks on shipping in the Red Sea that have slashed Suez Canal revenues for Egypt and deprived it of a key source of foreign currency.

The World Bank announcement follows a flurry of recent support pledged by allies including the United Arab Emirates, and also by the International Monetary Fund.

Earlier this month, the IMF agreed an expanded $8 billion loan package after Cairo implemented reforms that included moving towards a flexible exchange rate and hiking interest rates.

The World Bank's new programs will focus on "increasing opportunities for private sector participation in the economy," strengthening the governance of state-owned enterprises and "improving the efficiency and effectiveness of public resource management," the development lender said in a statement.