Financial Sector Development and Stability Policy Loan (WB-P178324)

  • Egypt
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 28, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Government of Egypt
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Law and Government
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 400.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 400.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ WB website

Updated in EWS Jun 14, 2022

Disclosed by Bank Feb 9, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to bank documents, the proposed program objective is to improve fiscal and financial sector resilience to external shocks and pave the way for more sustainable, inclusive and green growth.

  1. Pillar 1 of the proposed DPF advances Egypt’s preparedness towards (i) enhancing resilience in the face of compound climate risks and (ii) leveraging low carbon development opportunities while strengthening its competitiveness in the face of global decarbonization trends. Given the high uncertainty on future water availability, Egypt needs to minimize losses from climate change risks, reduce inefficiencies in how water and natural resources are used, allocated. Efforts to improve productivity of water should recognize the true value of water through better water allocation policies and a robust water pricing system. Further, institutional fragmentation and overlapping mandates in the water, agriculture, and environmental sector prevent innovation, private sector financing and lead to inefficiencies and wastage in the way resources are allocated and used. This will be addressed through prior actions 1, 2, 3, 4, and 5 of this proposed DPF.

  2. Pillar 2 of this proposed DPF addresses the barriers to female labor force participation (FLFP), which are multifaceted and complex requiring an integrated vision that addresses the multiple obstacles. Leveraging the previous DPF on Inclusive Growth for Sustainable Recovery (P171311), this operation will further promote reforms to a) strengthen inclusion, non-discrimination and equal opportunities in employment and working conditions; b) remove gender discrimination in the judiciary sector and promote women’s access to justice; and c) promote gender equality and inclusion through financial services, which is a key driver for sustainable transition, inclusive growth and the emergence of a modern, well-functioning market economy. These actions can be considered mutually reinforcing because having more women in the judiciary can encourage more women to join the labor force feeling safer and more comfortable to come forward in case of abuse of authority or sexual harassment whereas providing financial services for women can accelerate their overall economic activity and full integration in the economy. This will be addressed through prior actions 6, 7, and 8.

  3. Pillar 3 of this proposed DPF encompasses actions addressing fiscal and financial sector resilience, which is a prerequisite for sound and sustainable socioeconomic development, and essential to absorb current existing economic shocks. Fiscal resilience can be defined as the ability for a government to withstand economic shocks and their consequences on the Government’s finances. Financial sector resilience can be defined as the ability of financial intermediaries (chief among them the banks) to absorb economic downturn without jeopardizing depositors and, ultimately, the taxpayers. While the financial sector in Egypt has demonstrated good resilience to recent shocks since the 2016 Egyptian exchange rate crisis, and the COVID-19 pandemic, several reforms are still needed to supplement the stability toolbox of the monetary and financial authorities. With the recent external developments, additional reforms are even more important as the banking sector is expected to be under additional stress in the short (increased inflation on the background of the conflict between Russia and Ukraine, spillover effects from real economy downturn) and medium to long run (cybersecurity, climate change, crypto assets). Additional reforms in liquidity assistance, bank recovery plans, corporate governance, and changes to the capital markets law to authorize future cashflows securitization will be introduced in this proposed DPF. Through prior actions 9, 10, 11, 12, and 13, enhancements and development of Egypt’s fiscal and financial sector resilience will be addressed.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

World Bank:
Laurent Gonnet, Nahla Ahmed Mohamed Salaheldin Zeitoun
Lead Financial Sector Specialist

H.E. Rania A. Al-Mashat
Minister of International Cooperation

Implementing Agency:
H.E. Rania A. Al-Mashat
Minister of Internal Cooperation 


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The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing Information on how to file a complaint and a complaint request form are available at: 

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How it works