Egypt is in negotiations with the World Bank Group (WBG) to secure funding to finance the country’s second wave of economic reforms that focus on structural reforms, Egypt’s Ministry of International Cooperation said in a statement.
Egypt’s Minister of International Cooperation Rania Al-Mashat met on Sunday with the World Bank’s country director for Egypt, Yemen and Djibouti Marina Wes to discuss the future cooperation between the two sides under the World Bank’s development policy financing (DPF).
The negotiations are expected to concentrate on four pillars, which include enhancing Egypt’s financial stability, green recovery, private sector participation and boosting women’s participation in the economy, according to the statement.
In April, Egypt launched the second phase of its economic reform programme, which focuses on structural reforms, following the first phase of the International Monetary Fund (IMF)-backed programme in place since 2016.
The three-year phase, called the National Structural Reform Programme (NSRP), aims to support Egypt’s economy and spur its comprehensive and sustainable growth.
During the meeting, Wes said that Egypt is a strategic partner to the World Bank and that it aspires to engage in more cooperation with the country to support its developmental plans.
On her side, Al-Mashat said that the ministry seeks to enhance their economic relations with multilateral and bilateral development partners, in order to support their implementation of Egypt’s Vision 2030.
In March, the World Bank approved a $440 million loan that aims to support Egypt’s initiatives to enhance the safety and service quality of the country’s railways.
Over 2020, Egypt inked development finance agreements worth a total of $1.5 billion, covering various developmental sectors.
The IMF’s executive board is expected to discuss the third and final review of Egypt’s stand-by agreement (SBA), through which Egypt is expected to receive the third tranche of the loan, worth $1.6 billion.
Under the 12-month SBA loan programme, Egypt has previously obtained $3.6 billion in two tranches – out of $5.2 billion – to finance Egypt’s second wave of reforms.
The SBA programme marked the 11th financial deal Egypt has signed with the IMF since it becoming a member in 1945.