Egypt awaits disbursement of IMF loan's 2nd tranche

CAIRO - 14 March 2023: Egypt is looking forward to obtaining the second tranche of the International Monetary Fund (IMF) loan during the current month, as the date for the first review is on March 15th.

 

Egypt obtained the first tranche of the loan, amounting to about $347 million, last December, after the approval of the loan by the IMF’s Executive board.

 

It is scheduled that the value of the second tranche of the loan will be the same as the value of the first tranche, which is $347 million.

 

The IMF approved a $3 billion loan for Egypt over 48 months at the end of last year.

 

The agreement with the fund is set to allow Egypt to collect about $14 billion from international partners and agreements with Gulf countries to sell assets, in addition to $1 billion from the International Monetary Fund's Sustainability Fund.

 

Egypt resorted to the help of the International Monetary Fund, when it began negotiations in March 2022, and requested financing to support its dollar sources, which have been damaged since the Russian-Ukrainian war, with the exit of investors in government debt instruments from emerging markets such as Egypt.

 

Egypt also needs to support its dollar resources, to face the high cost of imports, and to meet its main needs after the rise in grain and oil prices as a result of the war.

 

The performance of the Egyptian economy will be reviewed according to the fund’s program over the course of eight reviews, the last of which will end in September 2026.