Just days after securing a $1.5 billion African Development Bank (AfDB) loan to boost economic development and develop national projects, Egypt has gotten another boost with the approval of a $3 billion World Bank loan.
International Cooperation Minister Sahar Nasr said, in a statement that the loan would help Egypt secure economic growth. The World Bank’s forecast in June put Egypt’s economy growth rate at 4.3 percent in 2015 and 4.7 percent in 2016. In October, the International Monetary Fund (IMF) raised its forecast of Egypt’s economic growth to 4.2 percent from 4 percent. It expects the economy to grow by 4.3 percent in 2016.
Confidence in the Egyptian economy is returning as the country gradually stabilizes following years of political turmoil.
The country’s credit rating (issuer and senior unsecured bond ratings) was upgraded by Moody’s Investors Service in April to B3 from Caa1, with a stable outlook. The rating agency attributed the upgrade to the country’s improving macroeconomic performance, reduction in external vulnerabilities, and ongoing commitment to fiscal and economic reform.
The World Bank loan will be disbursed over the next three years, according to International Cooperation Minister Sahar Nasr. It has a maturity of 35 years and an annual interest rate of 1.68 percent.