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Egypt will reach an agreement with the IMF to obtain finance within a month or two, says its Finance Minister Mohamed Maait. He also revealed that the government is also exploring financing options that include affordable loans from China and Japan. The size of the new IMF financing program has not yet been decided. Such details are determined in the final stage of negotiations
Egypt will reach an agreement with the IMF to obtain finance within a month or two, says its Finance Minister Mohamed Maait. He also revealed that the government is also exploring financing options that include affordable loans from China and Japan. The size of the new IMF financing program has not yet been decided. Such details are determined in the final stage of negotiations.
The minister also said that reaching an agreement with the International Monetary Fund is a message of reassurance and confidence to international markets.
Goldman Sachs and Bank of America estimated that Egypt would need to secure US$15 billion from the International Monetary Fund. Maait previously said Cairo was seeking a smaller amount. Analysts expected the support to range between $3-5 billion. Maait said that since last March, Egypt had witnessed US$22 billion in outflows from the domestic debt market, and had not received any significant inflows.
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The government is now working on attracting more foreign direct investment, boosting exports, increasing the number of initial public offerings (IPOs), and offering stakes for sale in some assets to bring in foreign currency. He pointed out that Egypt, which is seeking to diversify its funding sources, has held discussions with some governments such as Japan and China regarding obtaining loans at a reasonable cost.
