Egypt to receive 2nd tranche of IMF’s $3bln loan by end of March – Mission Chief

Egypt shall receive the second tranche of $3 billion financial support from the International Monetary Fund (IMF) by the end of March, with estimated amount of $347 million, IMF Mission Chief for Egypt Ivanna Vladkova Hollar said on Tuesday.

IMF has estimated that Egypt will receive the remaining amount of the loan, which is two billion dollars through six tranches at a value of $347 in March and September of each year until September 2026.

In December, IMF has approved a 46-month loan for Egypt under the Fund’s Extended Fund Facility (EFF) to address the impacts of the Russian-Ukrainian conflict that caused an unprecedented inflationary wave.

IMF-backed programme for Egypt aims to preserve the country’s macroeconomic stability, restore buffers, and pave the way for sustainable, inclusive, and private-sector-led growth, Hollar noted.

The programme mainly aims to shift to a flexible exchange rate regime, transit away from subsidising lending schemes and to adopt fiscal consolidation and debt management to ensure downward trajectory in public-debt-to-GDP.

“These reforms will not be easy and the proposed structural reforms will take time to implement and deliver the planned results of reducing vulnerabilities to shocks and attaining stronger growth outlook”, Hollar added.

Leave a comment