Egypt expects IMF approval of loan package next week

Egypt is expecting an approval of a fresh $3 billion Extended Fund Facility package from the International Monetary Fund (IMF) next week, Deputy Finance Minister Ahmed Kouchouk announced on Wednesday.

After reaching a framework agreement on an IMF package last October, Egypt pledged to shift to “durable exchange rate flexibility” in line with the Fund’s long-standing demands.

Asked at a Euromoney conference in Cairo if it was correct to see the IMF executive board meeting scheduled for December 16 to be effectively a formality, Kouchouk responded: “Very accurate.”

Egypt was expecting an initial tranche on the IMF loan of $750 million by the end of the July-June financial year, which would allow Egypt to “mobilise also a very decent package from other multilateral development banks as well as from the market,” the official added.

However, he said that the government’s focus was winning support for comprehensive economic reform.

“We believe that we have a very ambitious plan that is hinging around catalysing the private sector role, about engaging the private sector, getting more FDI, enhancing the competitiveness of our economy,” Kouchouk stated.

“We think that the funding shouldn’t be the main issue.” he noted.