IMF loan approval key milestone, help Egypt insurance, reinsurance activities prosper: ESIH

The International Monetary Fund’s (IMF) executive board approval for a new loan agreement is a key milestone and a testament to Egypt’s economic and political stability, said managing director of the Egyptian Saudi Insurance House – Salama (ESIH).

Mohamed Abdel Mawla further told Amwal Al Ghad the IMF’s approval is also a certification of trust in Egypt’s commitment to pay off all its foreign debts.

“This loan will help attract more foreign investments given the investors’ confidence and the country’s growth potentials …” Abdel Mawla said.

“… receiving new foreign investments in any economic sector in Egypt means indeed the availability of more dollar liquidity and thereby this will enable authorities to fix exchange rates …”

“This will help the insurance industry in Egypt prosper as seeing lower inflation rates means the availability of liquidity thus buying more insurance covers and witnessing a surge in size of premiums and the insurance sector’s bigger contribution to the GDP.”

Abdel Mawla also referred to an indirect impact of the IMF loan approval, saying global reinsurers will have stronger confidence in the Egyptian insurance market and thereby renewing any agreements with no further conditions.

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 Egyp t’s international and regional partners.