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Egypt is hoping to obtain the first tranche of the International Monetary Fund (IMF) loan of about US$750 million this month-December. This was revealed by Egypt’s Minister of Finance, Mohamed Maait.
Egypt is hoping to obtain the first tranche of the International Monetary Fund (IMF) loan of about US$750 million this month-December. This was revealed by Egypt’s Minister of Finance, Mohamed Maait. The amount as agreed upon by the IMF officials represents 25 percent of the total value of the financial support program that was recently approved by fund experts at $3 billion.
Egypt had reached an agreement with the IMF to avail an extended credit facility worth US$3 billion, This agreement is likely to be presented to the Board of Directors of the fund in December 2022 for approval.
The agreement also allows Egypt to obtain additional financing of US$1 billion through the newly established “Resilience and Sustainability Fund” by the International Monetary Fund, and an additional external financing package amounting to about US$5 billion from several international and regional financing institutions on soft terms. Maait said during an economic conference held in Cairo recently that the International Monetary Fund estimated the financing gap over 4 years, the duration of the program, at about US $16 billion, or US 4 billion each year.
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Egypt has been in talks with the International Monetary Fund since March 2022 about possible support that could include a new loan, as shocks from the war in Ukraine add pressure on the country’s economy.
