Egypt has received an additional $300 million in financial support as part of a major World Bank package aimed at helping the country manage the economic impact of the ongoing US-Israel conflict with Iran.
According to Stephane Guimbert, the World Bank’s division director for Egypt, Yemen and Djibouti, the increase was approved due to growing regional uncertainty and the economic shock affecting Egypt and neighboring countries because of the Iran war.
The full package includes $800 million from the World Bank along with a $200 million guarantee from the United Kingdom. The funding is designed to support private sector job creation, strengthen Egypt’s macroeconomic stability, and accelerate the country’s green transition efforts.
Originally set at $500 million, the World Bank’s contribution was increased by an additional $300 million in response to mounting regional tensions and economic pressures linked to the conflict in Iran.
Guimbert said the financing comes with highly favorable conditions compared to commercial market loans, carrying an interest rate of around 6%, a repayment period of 30 years, and a grace period before repayments begin.
The newly approved funding is the second phase of a three-part economic support programme. The first phase was approved in June 2024, while the third phase is expected to move forward next year.
Additional financial backing from international lenders, including the Asian Infrastructure Investment Bank, is also expected to complement the programme through parallel financing initiatives.