Egypt expected to receive in June last tranche of IMF $5.2 billion loan: Minister

CAIRO - 28 May 2021: Egypt will receive the last tranche of its $5.2 billion loan from the International Monetary Fund (IMF) before the end of June, Minister of Finance Mohamed Maait suggested in remarks to Egypt Today.

 

The value of the tranche is $ 1.6 billion.

 

After the executive board of the IMF approves the new tranche during the coming days, the money will be transferred to the ministry's accounts in the Central Bank of Egypt.

 

The tranche will back the country's foreign exchange reserve, the minister noted.

 

The IMF earlier announced that its experts had reached an agreement with the Egyptian authorities regarding additional financing, after a second and final review of Egypt's economic program, and a conditional credit arrangement of $5.2 billion for a period of 12 months.

 

The IMF said on Tuesday that it expects to provide additional financing of $1.6 billion to Egypt, after it is approved by its executive board in the coming weeks.

 

“Over the past 12 months, the [Egyptian] authorities’ strong performance and commitment helped achieve the program’s objectives of maintaining macroeconomic stability during the pandemic while protecting necessary social and health spending and implementing key structural reforms,” the IMF said in a statement.

 

"Egypt’s economy has shown resilience, with the impact of the COVID-19 crisis mitigated by the authorities’ swift, and balanced policy response, including the two-step request for the IMF’s Rapid Financing Facility and Stand-by Arrangement package of around $8 billion," the statement noted.

 

"In the near term, fiscal and monetary policies should continue to support the economic recovery while preserving macroeconomic stability," the statement noted.

 

"Deepening and broadening structural reforms is critical to solidify the recovery, address post-COVID-19 challenges, strengthen buffers, and ensure higher and more inclusive growth," it added.

 

Gross domestic product (GDP) of the Egyptian economy in the current fiscal year 2020/2021 is expected to reach LE 6.4 trillion, according to Maait this week.

 

Maait clarified Monday that this comes as a result of the expansion of development investments that reflect the success of the state, in achieving a balance between preserving the health of citizens and turning the wheel of the national economy.

 

He confirmed that the economic gains achieved by Egypt pushed the government to complete the development march, and to proceed with the implementation of structural reforms to strengthen the structure of the national economy.

 

The Egyptian minister said in a statement, that the reforms contribute to maximizing efforts to improve the lives of citizens and raise the level of services provided to them, in a manner consistent with the unprecedented national projects aimed at providing a decent life for Egyptians.

 

Maait added that the continued praise of international financing and rating institutions attracts new investments and provides more job opportunities for young people, and leads to the localization of advanced global industries and modern technologies, raising our production capabilities, expanding the export base, and enhancing the competitiveness of Egyptian products in global markets.