Cairo – Mubasher: The International Monetary Fund’s (IMF) Executive Board approved a 46-month arrangement under the Extended Fund Facility (EFF) for Egypt in an amount of SDR 25 million (equivalent to 115.40% of quota or about $3 billion).
The board’s decision enables an immediate disbursement of SDR 261.13 million (equivalent to about $347 million), which will help meet the balance of payments need and provide support to the budget.
Egypt’s IMF-supported programme presents a comprehensive policy package to preserve macroeconomic stability, restore buffers, and pave the way for inclusive and private-sector-led growth. The package includes a durable shift to a flexible exchange rate regime, a monetary policy aimed at gradually reducing inflation, fiscal consolidation to ensure a downward public debt trajectory while enhancing social safety nets to protect the vulnerable, and wide-ranging structural reforms to reduce the state footprint and strengthen governance and transparency.
The EFF is expected to catalyse additional financing of about $14 billion from Egypt’s international and regional partners, including new financing from GCC countries and other partners through the ongoing divestment of state-owned assets as well as traditional forms of financing from multilateral and bilateral creditors.
Kristalina Georgieva, Managing Director and Chairman of the IMF’s Board, said: “Given the heightened uncertainty and risks to the global economic outlook, the authorities’ commitment to stay the course on exchange rate flexibility, prudent macroeconomic policies, and structural reforms is critical. Their strong ownership and track record under previous Fund-supported programmes and political support for the policy package are important risk-mitigating factors to achieving the objectives of the Fund-supported programme.”
Earlier this month, the IMF's executive board scheduled a meeting on Egypt on 16 December 2022 as the Arab world’s most populous nation awaits final approval for a $3 billion loan deal.
On 5 December, the Egyptian Finance Minister, Mohamed Maait, said his country hopes to obtain the first tranche of the IMF loan valued at $750 million this month.
