International Monetary Fund
The purpose of this request is to strengthen Egypt's economy and ensure a sustainable infusion of foreign currency liquidity.
“Ensuring a flexible exchange rate system is one of the IMF’s prerequisites for the loan, and this is what the Central Bank of Egypt is focusing on,” Economic Expert Karim Nassar stated in an interview with Egypt Today.
Maait also stated that Egypt will obtain new $3 billion from the World Bank during the coming period pointing out that this amount is part of a total package worth $20 billion from several international partners
The IMF loan has been augmented and increased to $8 billion instead of $3 billion "due to significant macroeconomic challenges that have become more complex to manage with the impact of the recent conflict in Gaza on tourism and Suez Canal receipts," according to the IMF statement
Egypt will also receive soft loans from the World Bank and the European Union, according to the Prime Minister.
Prime Minister Mostafa Madbouly commended decisions announced by the Central Bank of Egypt (CBE) this morning, including to let the currency trade freely, saying they endorse state’s efforts to address inflation.
The Egyptian government and the International Monetary Fund (IMF) are on the verge of signing an agreement to augment the Egyptian loan program within a few hours, Al Qahera News reported, citing a high-level source.
The International Monetary Fund (IMF) resolved major issues with Egypt in its review of its $3 billion loan program, IMF’s Managing Director, Kristalina Georgieva, announced.
Kozack emphasized that the IMF team and the Egyptian authorities have reached a consensus on the key components of the program, with the authorities demonstrating a strong commitment to its implementation
This came during her meeting with Egypt’s Prime Minister, Mostafa Madbouly, on the sidelines of the World Government Summit in Dubai.
Madbouly confirmed the Egyptian government's commitment to comprehensive economic reforms, including reducing inflation rates, decreasing the debt-to-GDP ratio, and bolstering the private sector.
This is a $30 million increase from the $35.21 billion recorded in December 2023
Goldman Sachs also projected that Egypt's financing requirements over the next four years will amount to $25 billion
The IMF team and Egyptian authorities achieved "excellent progress in discussions on the comprehensive policy package required to reach an agreement at the expert level for the first and second combined reviews of the Economic Reform Program in Egypt, supported by the Fund."
Separate sources have confirmed to news outlets that the Egyptian government has reached an agreement in principle with the IMF, which includes the release of the remaining $3 billion from the loan
The IMF expected, in the "World Economic Outlook Update January 2024" issued on Tuesday, the Egyptian economy to grow by 3 percent during the current fiscal year, compared to previous expectations in October of a 3.6 percent growth.
The IMF mission, headed by Ivanna Vladkova Hollar, Chief of the Middle East and Central Asia department, comprises IMF representatives as well
IMF's team is currently engaging in discussions with Egyptian authorities to support the completion of the first and second reviews of the Extended Fund Facility (EFF) that Egypt has with the Fund
During the meeting, Secretary Yellen underscored the unwavering support of the United States for Egypt and its ongoing economic reform program
Egypt is close to finalizing of an agreement with the International Monetary Fund (IMF) to enhance its current $3 billion rescue program. According to Bloomberg's sources, the program is expected to be expanded to around $6 billion
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