Chairing the third meeting of the National Technical, Legislative and Legal Committee, Minister of International Cooperation (MoIC) Dr. Rania A. Al-Mashat met with several Egyptian officials and international financing institutions (IFIs) to discuss Egypt’s action plan regarding the transformation of IFIs from operating at the benchmark interest rate (LIBOR).

The meeting followed up on initiatives presented by the World Bank to stop using LIBOR starting January 2022, as well as to study the efforts of other IFIs, namely the African Development Bank (AfDB), the Asian Infrastructure Investment Bank (AIIB), and the OPEC Fund for International Development, in the same context.

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Al Mashat noted the committee’s eagerness to continue its coordination and work between all relevant entities, and to study all technical and legal aspects to achieve a transition away from LIBOR in a way that will ensure the government’s interests.

The minister praised the World Bank’s decision, as well as the efforts of international institutions to leave behind LIBOR, initiated by the World Bank and its member states, alongside AfDB, AIIB, and OPEC.

She added that the MoIC is currently studying the steps to transition away from LIBOR that will boost multilateral cooperation, within the national committee formed by Prime Minister H.E. Dr. Mostafa Madbouly.

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The meeting was also attended by Dr. Jihan Saleh, Economic Consultant to the Prime Minister; Dr. Ahmed Abu El-Dahab, Representative of the President of the Cabinet Advisory Board; along with representatives from the Central Bank of Egypt, and the Ministries of Finance, Planning and Economic Development, Foreign Affairs, Parliamentary Affairs, and International Cooperation.

The Minister added that the steps being taken to transition constitute a reference for negotiations that will take place with other financing institutions as well, stressing the need for the international community to restructure international programs that are priced as per LIBOR, so that the global community can corroborate on the transition.

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During the World Bank’s annual meetings last October, Al-Mashat took part in a virtual session titled “Beyond LIBOR… Are We Ready?”, where the Minister emphasized the need for the international community and IFIs to agree on a new benchmark interest rate, with a clear vision to encompass the interests of all stakeholders.

It is worth noting that Prime Minister H.E. Dr. Mostafa Madbouly formed the national committee No. 2264 of 2020, to study the Government of Egypt’s action plan in transition away from LIBOR as a reference rate for current and future financing agreements, and to study the implications of signing amendments to agreements, alongside the necessary constitutional and legal procedures that shall follow.