IMF’s approval to raise loan to $8B will support reforms, includes access to sustainability fund: Maait

Cairo – March 31, 2024: The International Monetary Fund’s (IMF) approval to increase Egypt’s loan from $3 billion to $8 billion will also grant the country access to the IMF’s Resilience and Sustainability Fund, explained Minister of Finance Mohamed Maait.

In a statement released on Saturday, the minister emphasized the significance of the IMF’s approval in support of Egypt’s economic reforms.

On the Resilience and Sustainability Fund, Maait noted that Egypt will be able to secure additional low-cost, long-term financing for climate-related projects, totaling $1.2 billion.

The minister highlighted that the IMF-supported economic reforms aim to restore economic stability and provide additional support and financing from other financial institutions and international development partners, surpassing a total of $20 billion.

Egypt is actively working to facilitate economic recovery, Maait explained, highlighting its efforts to establish policies to bolster the private sector, and growth and employment, starting from the upcoming fiscal year’s budget.

Maait also noted that work on revitalizing production, industrial, and export sectors are underway.

The government’s economic reform’s aim and progress are apparent in the new budget’s targets and priorities, he noted, emphasizing its goals to reduce budget and debt deficits as a percentage of GDP, achieve sustainable growth, and alleviate burdens on citizens.

Maait highlighted the decision to introduce a general government budget for the first time in the upcoming FY, which will include all economic entities and state administration.

This unprecedented general government budget will encompass all national economic activities, emphasizing a comprehensive approach to managing state finances. The minister noted that it will enhance Egypt’s ability to prioritize and achieve economic, social, and developmental goals.

Maait stressed that the new budget looks to rationalize investment spending across state entities, capping investments at LE 1 trillion.