IMF board to decide on $1.2B Egypt loan in ‘coming weeks’

The executive board of the International Monetary Fund (IMF) is set to discuss Egypt’s loan programme in the coming weeks, paving the way for the country to receive $1.2 billion upon approval of the fourth review.

This was announced by Julie Kozack, Director of the IMF’s Communications Department, during a press briefing in Washington. Kozack stated that preparations are underway to present Egypt’s case to the board.

This disbursement comes as Egypt faces domestic economic challenges compounded by global financial pressures. In December, the IMF and Egyptian authorities reached an agreement to revise the country’s fiscal path. This adjustment aims to create fiscal space for crucial social programmes that support vulnerable groups and the middle class, while simultaneously ensuring long-term debt sustainability.

The reform programme underpinning the loan focuses on several key priorities: curbing inflation, maintaining exchange rate flexibility, and improving access to foreign currency. Further priorities include enhancing domestic revenue, creating a more attractive investment climate, accelerating the government’s asset divestment strategy, leveling the playing field between state-owned and private enterprises, and strengthening governance and transparency.

Attribution: Amwal Al Ghad English