Egypt will receive an extra $300 million as part of a $1 billion World Bank development financing package to help it confront fallout from the Iran war, Stephane Guimbert, the World Bank’s division director for Egypt, Yemen, and Djibouti, has told reporters, Reuters reports.

The package, consisting of $800m from the World Bank and a $200m British guarantee, is to support private sector-led job creation, macroeconomic stability, and the green transition. The bank’s board approved it yesterday.

The bank’s share was increased from $500m due to “the uncertainty in the region and the shock facing Egypt, like other countries, because of the war in Iran”, he said.

The financing is on terms unavailable in commercial markets at around 6pc interest, with a maturity of 30 years and a grace period before repayments begin, Guimbert said.