Egypt hopes for first tranche of IMF loan this month – minister

Finance Minister Mohamed Maait said on Sunday Egypt hoped to receive the first tranche worth around $750 million out of a 46-month $3 billion loan programme with the International Monetary Fund (IMF) this December.

On October 27, Egypt reached a staff-level agreement on comprehensive economic policies and reforms with the IMF to be supported by a 46-month Extended Fund Facility (EFF) arrangement of $3 billion.

The EFF, with a requested access of SDR 2.35 billion (equivalent to about US$ 3 billion), aims to provide Egypt with balance of payments and budget support while catalysing additional financing from the country’s international and regional partners to maintain economic stability, address macroeconomic imbalances and spillovers from the war in Ukraine, protect livelihoods, and push forward deep structural and governance reforms to promote private sector-led growth and job creation.

The agreement is subject to approval by the IMF’s Executive Board, which is expected to discuss the authorities’ request this month.

In the context of the EFF, the Egyptian government could also unlock up to an additional US$1 billion financing under the newly created Resilience and Sustainability Facility (RSF), designed to provide affordable, long-term financing to help build resilience, including against climate change.

Discussions on access under this facility will also take place in the coming months.