Egypt's state-run MENA news agency says Egypt has signed a $500 million loan with the African Development Bank, the first tranche of a $1.5 billion loan over three years.

MENA says the loan signed on Thursday will be directed toward the country's economic development and supporting the budget.

Facing a dollar shortage, Egypt has also been negotiating a $3 billion loan with the World Bank to finance its budget deficit.

The Egyptian government targets a budget deficit of 8.9 percent of the country's gross domestic product in the current fiscal year ending June 2016, according to the budget.