Egypt, WB sign deal on 2nd tranche of $3bn WB loan

International Cooperation Minister Sahar Nasr signed on Thursday with Asad Alam, the World Bank Country Director for Egypt, Yemen and Djibouti, an agreement covering the one–billion-dollar second tranche to be extended by the World Bank to support comprehensive economic and social development in Egypt.

The tranche – which is part of a three-billion-dollar loan – will boost hard currency reserves and, hence, support development projects, Nasr said.

The three-year loan also backs the government's social protection program for supporting needy people, Nasr said.

The World Bank's approval to extend the loan to Egypt underlines confidence in Egypt's national economy, she said.

She also noted that the African Development Bank also agreed two days ago to extend a 500 million dollar tranche to Egypt as part of a 1.5 billion dollar three-year loan.

The World Bank official stressed support for the ambitious Egyptian reform program which focuses on creating jobs, improving business institutions competitiveness and raising people's standards of living.

He noted that the extended funds would be allocated to support development sectors, especially sanitation in rural areas as well as other infrastructure projects.