IMF loan to strengthen Egypt’s dollar liquidity – United Bank chairman

The International Monetary Fund’s (IMF) executive board approval for a new loan programme will help boost Egypt’s dollar liquidity and have a profound impact on economy, said chairman of state-run United Bank on Sunday.

Ashraf El Kady further said the IMF approval is a testament to Egypt’s stable fiscal solvency.

The situation in Egypt requires some rationalisation and more productivity by working on boosting the contribution of sectors such as tourism and logistics to the country’s GDP, and outlining a new strategy to develop manufacturing to decrease imports and promote exports, the veteran banker added.

On Friday, IMF board approved a 46-month $3 billion financial support package for Egypt.

“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 IMF added in a statement.

Over the course of the programme, the IMF said it will catalyse additional financing of about $14 billion from Egypt’s international and regional partners.