By: Mostafa Adel
Cairo – Mubasher: Egypt aims to receive a $2 billion loan from the International Monetary Fund (IMF) in the third quarter of 2016, as soon as discussions are concluded, said a senior official at Egypt’s Ministry of Finance (MoF) on Thursday.
We seek to conclude our negotiations with the IMF in August and receive an immediate $2 billion loan within 4-7 weeks after the talks are over, stated deputy finance minister for monetary policy Ahmed Kojak at a press conference.
Egypt is currently in talks with the IMF for a three-year $12 billion loan. The loan will be divided on instalments amounting to $4 billion annually.
Through the loan, the most populous Arab country aims to bridge a funding gap, restore market stability and attract foreign investment.
Egypt’s funding gap amounts to $30 billion over a three-year period ending 30 June 2018, according to the government’s programme approved by the Cabinet.
Each tranche of the IMF loan would have to repaid within five years including a three-and-a-quarter year grace period, the MoF official added.
Egypt suffers from a sharp drop in its foreign currency reserves owing to declining tourist numbers, exports and remittances.
Translated by: Nada Adel Sobhi
