The main objective of the operation is to support the Egyptian authorities in implementing their second generation Financial Sector Reform Program (2009-2012), which aims at further developing an enabling environment for financial intermediation, and enhancing access to finance through strengthening the bank and non-bank financial sector.

'We are pleased to continue supporting Egypt's Financial Sector Reform Program which contributes to sustained economic growth, poverty reduction, and overall prosperity for Egypt. This program represents one of the most far-reaching and comprehensive reforms to have been launched in Egypt and in the Arab World,' said A. David Craig, Country Director for Egypt, Yemen and Djibouti.

Egypt has made substantial progress in the development of its financial sector which led to a friendlier investment climate. Real gross domestic product (GDP) growth increased from an average of 3.5 percent during FY01-04 to around 7 percent between FY06 and FY08. An integral component of this comprehensive reform program was a financial sector reform program.

'Egypt was able to weather the recent global financial crisis due to the Central Bank of Egypt and the Ministry of Investment successful implementation of the comprehensive Financial Sector Reform Program that led to the improvement of the performance of the financial sector and the strengthening of the sector's regulatory and supervisory authorities, as well as the financial institutional infrastructure,' said Sahar Nasr, the World Bank's Task Team Leader.

'The second-generation financial sector reforms will result in a more efficient and sound financial system that will provide improved services to Egyptian citizens, especially the rural low-income groups, as well as micro, small and medium enterprises, through further enhancing their access to quality and diversifies financial services, which will contribute to sustained growth in Egypt,' she added.

Getting the financial system in Egypt to function more effectively and provide the full range of financial services is a task that will be well rewarded with economic growth and reduced poverty. Access to financial services is an important factor in the reduction of poverty and inequality, and the improvement of welfare among lower income families.