Development Program Objectives:
The proposed operation is built around three pillars, which are also the Program Development Objectives (PDOs) of the operation:
(1) Advance fiscal consolidation through higher revenue collection, greater moderation of the wage bill growth, and stronger debt management.
(2) Ensure sustainable energy supply through private sector engagement
(3) Enhance the business environment through investment laws, industrial license requirements as well as enhancing competition.
This is not the first Development Policy Loan for the Arab Republic of Egypt. The World Bank supported Egypt through a series of three Financial Sector Development Policy Loans (DPL I, II, and III)—amounting to US$ 1.5 billion in total during 2006-2011, with the aim of implementing the major Financial Sector Reform Program, which helped Egypt weather the risks associated with the global financial crisis. The program included restructuring and privatizing state-owned banks, reforming the insurance sector (including restructuring the state-owned insurers), developing a new system of mortgage finance for a more sustainable housing market, and strengthening financial regulatory capacity and financial supervision apparatus. Furthermore, the three-tranche Affordable Mortgage Finance Program, amounting to a total of US$ 300 million (2009-2015), assisted the Government of Egypt and contributed to expanding the residential mortgage market and increasing access to mortgage loans for low -and middle-income households in order to improve housing affordability.
Further information and details on previous development policy loans could be accessed through the following links:
Financial Sector Development Policy Loan I
Financial Sector Development Policy Loan II
Financial Sector Development Policy Loan III
Affordable Mortgage Finance DPL