World bank group to provide Egypt with $6 billion over three years

CAIRO - The World Bank Group said on Monday it intends to provide more than $6 billion of support over the coming three years to Egypt, which has been struggling with a foreign currency crunch that slowed economic activity and led to shortages of imported goods.

The World Bank Group said $3 billion will go towards government programs and $3 billion to the private sector, all subject to the group's board approval.

The support package comes after Egypt devalued its currency earlier in March, to curb record high inflation, following a $35 billion deal with Emirati sovereign wealth fund ADQ in late February.

It also secured an expanded $8 billion deal with the International Monetary Fund in March, with the European Union announcing a $8.1 billion funding package to Egypt on Sunday.

"In support of the government’s development priorities, programs will focus on increasing opportunities for private sector participation in the economy, including through the government’s Asset Monetization Program," the World Bank Group said in its statement.

Egypt is selling assets to boost the private sector and raise scarce hard currency, setting a target in 2022 to raise $10 billion annually over four years through private investment in state assets.

The World Bank Group said its current operational portfolio in Egypt is more than $8 billion, comprising $6 billion from the International Bank for Reconstruction and Development, $1.9 billion from the International Finance Corporation, and $0.5 billion from the Multilateral Investment Guarantee Agency.