CAIRO: The African Development Bank approved on Tuesday $500 million, the first installment of a $1.5 billion loan to Egypt over three years to support its budget, Youm7 reported.
Prime Minister Sherif Ismail and head of the Bank Akinwumi Adesina will sign the agreement Thursday, International Cooperation Sahar Nasr told Youm7.
The government is trying to reduce the expected budget deficit of 2015/2016 to 251 billion EGP ($32, billion,) equivalent to 8.9 percent of the gross domestic product. In 2014/2015, the budget deficit amounted to 279.4 billion EGP at a percentage of 11.5 of the GDP.
Meanwhile, Egypt awaits the approval of the World Bank on a $3 billion loan to also support the budget. The WB’s decision is scheduled for Thursday.
Reporting by Yasmine Samra.