IDB to help finance Egypt projects for $2.5bn
Jeddah, June 15, 2011
Jeddah-based Islamic Development Bank is setting aside $2.5 billion for development projects in Egypt over the next three years to support its economy after the ouster of its leader, the bank said on Wednesday.
"To assure the role of the banking group in supporting the development efforts in Egypt, the group decided to offer $2.5 billion in financing over the next three years, that will be intended to finance development projects," the bank said in a statement.
Political turmoil in Egypt led to the resignation of President Hosni Mubarak on Feb. 11, hurting tourism and spooking foreign investors.
The International Monetary Fund said in April that Egypt faced a funding gap of $10 billion to $12 billion and is projecting slower growth of 1.0 per cent this year, well below its long-term average, after a 5.1 per cent expansion in 2010.
Saudi Arabia pledged in May a $4 billion aid package for Egypt, including a $1 billion deposit at the central bank and $500 million in bond purchases. – Reuters