CAIRO - 1 February 2024: According to sources cited by Al-Asharq Bloomberg, the International Monetary Fund (IMF) mission has extended its visit to Egypt until the end of the week, citing discussions regarding a potential deal to expand Egypt’s current $3 billion loan to $10 billion.
Al Arabia recently reported a preliminary agreement between Egypt and the IMF to increase the loan to $7 billion.
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. Currently, only the first tranche of $347 million has been disbursed.
According to those sources, the fund plans to provide Egypt with an extra $3 billion loan, to reach the total funds acquired by Egypt to $6 billion, with the amount to be disbursed in one or two installments soon, they explained.
The first and second reviews for the initial $3 billion loan program are expected to be completed in the coming weeks, according to Daniel Leigh, a senior IMF official, speaking to Reuters.
It is worth noting that the IMF mission arrived in Egypt in mid-January to engage in discussions regarding these reviews.
In a previous interview with Al-Asharq in December, IMF Managing Director Kristalina Georgieva mentioned that Egypt is on the verge of receiving comprehensive support for its economic reforms from the IMF.
Furthermore, in November 2023, Georgieva indicated that the organization was considering expanding Egypt's $3 billion Extended Fund Facility (EFF) due to the economic consequences of the Israeli-Gaza war.
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