World Bank approves $7B loan to support Egypt's push to empower private sector, combat climate change impacts

close

Video

Fox News Flash top headlines for March 22

Fox News Flash top headlines are here. Check out what's clicking on Foxnews.com.

The World Bank said Wednesday it approved a $7 billion loan to support Egypt’s push to empower the private sector and enhance its efforts to combat the impacts of climate change.

The loan, approved Tuesday by the World Bank’s board of executive directors, is separate from a bailout loan from the International Monetary Fund, which Egypt secured in December.

In a statement, the World Bank said funds will be delivered over the next five years and would help Egypt generate "more and better" private sector jobs. It will also improve Egypt's health and education services and social protection programs, it said.

EGYPT CONTINUES TO BATTLE INFLATION AS ITS CURRENCY LOSES VALUE

"We are proud to continue our strategic partnership with Egypt and we are committed to supporting ongoing efforts dedicated to improving the quality of life for Egyptians," said Marina Wes, the bank's country director for Egypt, Yemen and Djibouti.

Wes said the World Bank’s partnership with Egypt supports the country’s efforts "to build back better by creating conditions for green, resilient, and inclusive development."

The World Bank approved a $7 billion loan to support Egypt's push to enhance its efforts to combat climate change and empower the country's private sector. (AP Photo)

The loan would also help Egypt improve its resilience to economic shocks and strengthen its ability to adapt to and mitigate climate change impacts, the World Bank said.

PROTESTS AND STRIKES ERUPT ACROSS EUROPE AS SOARING INFLATION, COST OF LIVING DRIVES 'WINTER OF DISCONTENT'

The deal comes as Egypt’s economy faces mounting challenges partly due to Russia's invasion of Ukraine, which rattled the global economy. Over the past year, inflation has surged and pressures on the poor and middle-class have mounted.

Over the past seven years, Egypt has received many loans from international financial institutions as it has embarked on a series of reforms to overhaul its battered economy and address the repercussions of the coronavirus pandemic and the Russian invasion of Ukraine.

CLICK HERE TO GET THE FOX NEWS APP

Most recently, Egypt secured a $3 billion bailout loan in December from the International Monetary Fund in a deal that required the government to implement reforms including devaluation of the Egyptian pound and loosening the state’s grip on the economy.