Egypt denied new loans due to misusing previous ones

Egypt has been denied fresh loans by international lenders, due to failing to employ past loans for the use of their targeted purposes, according to a source from Egypt’s presidency.
The source said donor countries, funds and international banks, including the African Development Bank, have made new loans conditional on the Egyptian government’s use of previous loans, worth of more than US5 billion, for the improvement of housing, health and infrastructure services. The source explained that out of that amount, only US$1.8 billion had already been applied to those targets.
The presidency had asked several government ministries, including the Ministry of Planning and International Cooperation, to provide explanation about the alleged failure in the loan utilization.
The presidency’s council on economic development had prepared a document listing the government’s unused loans, the source added.
Mohamed Hammam, an assistant to the Minister of Planning and International Cooperation, told Al-Masry Al-Youm the ministry had already answered the presidency’s queries.
All loans received by the government had been disbursed, except for two loans by the World Bank, Hammam said, but did not mention the amount of those two loans.
Edited translation from Al-Masry Al-Youm

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