IMF announces timetable for disbursal of Egypt’s 3 billion loan

The International Monetary Fund (IMF) has on Tuesday announced a timetable for disbursing Egypt’s $3 billion financial support under its Extended Fund Facility (EFF) programme.

According to IMF staff report, the Washington-based lender has already disbursed the first tranche of $347 million in December 2022 following the executive board’s approval.

The IMF further said that there will be equal phasing of access under the EFF worth $261.13, with the disbursement to take place in March and September of each year until 2026.

“Equal phasing of access under the EFF is proposed, with the last and final disbursement to take place by end-2026.” the report read.

“The Egyptian authorities have requested a four-year extended arrangement under the Extended Fund Facility (EFF) of 115.4 percent of quota (SDR 2,350.18 million). The programme aims to sustainably address macroeconomic vulnerabilities and promote private-sector-led growth and job creation. It is based on three broad pillars: exchange rate and monetary policies focused on restoring external resilience and maintaining price stability; continued fiscal discipline and implementation of fiscal structural measures; and broad-based structural reforms to reduce the state footprint and increase the role of the private sector in the economy.”

In mid-December 2022, the IMF executive board approved a 46-month arrangement worth $3 billion under the EFF to Egypt.