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African Development Bank signs US$ 500 million, 2nd tranche of budget support loan for Egypt
The African Development Bank, on 19th December 2016, signed a loan of US$ 500 million to finance the Egypt Economic Governance and Energy Support Program Phase II. The loan, which was approved by the Bank’s Board of Executive Directors on 13th December 2016, is the second tranche of a three year, US$ 1.5 billion programmatic series, covering the fiscal years 2015/16 to 2017/18 (July-June). It builds on the first phase of the operation, a US$ 500 million loan that was approved in December 2015 and was fully disbursed in early January 2016.
The Economic Governance and Energy Support Program is designed to support strong, sustainable and inclusive growth in Egypt by providing a financing incentive for reforms that will help drive fiscal consolidation, improved governance and efficiency in the energy sector, and strengthening of the business operating environment. Overall, the current tranche will provide a significant contribution towards meeting the Government’s financing requirement in 2016/17.
The loan was signed on behalf of the Government of Egypt by the Minister of International Cooperation, Sahar Nasr, and co-signed by the Bank’s Resident Representative in the country, Leila Mokadem. The ceremony was witnessed by Executive Director Dr Samy Zaghloul. Following signature, Minister Nasr said: “This is a vote of confidence for the Government’s economic programme that will support development projects, which aim at achieving sustainable and inclusive development based on demands of the Egyptian people, focusing on marginalized segments and lagging regions”.
In response, on behalf of the Bank, Dr Zaghloul said that “I welcome this strong partnership, which is of critical importance to the Government's reform programme and will support Egyptians' standard of living and improve the business environment. Overall, I am delighted that the Bank is helping to increase our support to help provide job opportunities and improve livelihoods”.
Also speaking on the occasion, Mrs Mokadem underscored that “the loan signature paves the way for the Bank to continue its budget support, which will contribute to sustaining the Government’s reforms agenda, provide further fiscal space to improve the targeting of public action to the most vulnerable segments of the population, and support Egypt in improving the quality of life and well-being of its citizens”.