World Bank approves $1 billion loan to Egypt, part of $8 billion plan for economic reforms

The World Bank Group has announced a $1 billion loan to Egypt, the first installment of an $8 billion financing plan to help the country carry out key economic reforms.

Thursday's statement says the $8bn loan will be disbursed over a four-year period to support Egypt's efforts to "renew its social contract with its citizens." It said future loan instalments would be dependent on the country's progress in carrying out economic reforms.

The loan will provide much-needed foreign currency to Egypt, which has struggled economically in the wake of the 2011 uprising.

Egypt's economic outlook declined following the Oct. 31 crash of a Russian passenger jet in the restive Sinai Peninsula, which led Britain and Russia to suspend flights over concerns the plane may have been downed by a bomb.