Egypt will benefit from $ 2 billion borrowed from several international and regional banks, the finance ministry said. The operation to support the national budget was coordinated by Emirates NBD Capital and First Abu Dhabi Bank.
The Egyptian government has secured $ 2 billion from several regional and international banks. The announcement was made by the Egyptian Ministry of Finance in a statement issued on August 31, 2020.
According to the Egyptian authorities, these funds will be used to finance the state budget and to support the Egyptian economy in order to strengthen its resilience to the fluctuations that shake the world markets. The envelope consists of a conventional loan of $ 1.5 billion and an Islamic loan of $ 510 million.
The acquisition of these funds comes amid a difficult context marked by the covid-19 pandemic which has prompted the Egyptian government to adopt a historically high budget for the 2020-2021 budget year, as several experts expect to see the deficit widen. In a report on the country, the IMF said it expected economic growth of 2% for Egypt for the current fiscal year.
According to Egyptian Finance Minister Mohamed Maait, the operation was coordinated by two banks in the United Arab Emirates (UAE), namely: Emirates NBD Capital and First Abu Dhabi Bank.
Source Ecofin Agency