Egypt Independent

Egypt signs US$200 million loan with World Bank

The Egyptian government is signing an agreement with the World Bank for a loan of US$200 million, Minister of Planning and International Cooperation Fayza Abouelnaga said at a press conference on Tuesday.

The minister explained that the loan would be allocated to the Housing Ministry for water and sanitation projects.

She also said that consultations are ongoing with the International Monetary Fund (IMF) regarding a loan of $3.2 billion to finance the budget deficit.

An IMF delegation arrived in Cairo on Monday to discuss the loan. Negotiations started on Monday and are expected to take several weeks to complete.

Abouelnaga told reporters after the prime minister's meeting with the IMF delegation on Monday that the IMF so far has not set any conditions for the loan.

The IMF loan of $3.2 billion would extend over 18 months, after which Egypt may have the option to increase the amount of the loan or seek additional funding from other sources.

The previous army-backed government turned down an offer of $3 billion in financial assistance from the IMF last June, but since then, the country's funding problems have worsened and its currency has come under heavy pressure.