Egypt signed on Sunday 28 January a third and final loan in the amount of 500 million for the country’s governance reform with the African Development Bank (ADB). The loan agreement, approved by the ADB Board of Directors on January 18, was signed at an official ceremony between Sahar Nasr, Egyptian Minister of Investment and International Cooperation, and Malinne Blomberg, Head Egyptian country of the AfDB.
The funding program is designed to support Egypt’s sustainable growth, but also to improve governance and provide employment opportunities for young people. AfDB currently funds 30 multi-sector projects in Egypt with a total value of 2,4 billion.
According to the signatories, the funds will be devoted to social protection, which meets the needs of the citizens and the priorities of the Egyptian program, in support of the social part of the economic reform program of Egypt.
In December 2015, Egypt signed an agreement with the AfDB to receive a loan of 1,5 million dollars to be disbursed in three equal installments. The loan should be repaid in the 25 years with a five-year grace period and an interest of 1,2 percent. The first tranche was received at the end of December 2015, while the second was received at the end of March 2017.
According to recent statistics published by Fitch Ratings, Egypt’s external debt reached 100 billion in December, representing 44% of the country’s total gross domestic product (GDP), against 23% at the end of 2016.
