IMF may complete 2nd review of $5.2bln standby loan by June end, Maait

The IMF will be completing its second and final review of its year-long USD 5.2 bn standby loan program by the end of June, Finance Minister Mohamed Maait told Bloomberg Asharq.

A positive review would unlock the final $ 1.6 bn tranche; Egypt received an initial $2 bn in June 2020 and an additional $1.6 bn late last year.

he IMF’s first review last January saw the fund increasing the state growth outlook for the year to 2.8 percent from 2 percent, with the fund praising Egypt’s fiscal and monetary responses to covid-19. T

he government’s push for green investments, as well as progress with its structural reform program also got a nod from the IMF.

The fund noted a “marginal breach” as Egypt’s inflation fell short of the lower end of the Central Bank of Egypt’s inner target band of 6-12 percent, triggering a consultation requirement and prompting the CBE to lower and narrow its target range to 5-9 percent.

The IMF had approved the loan to help Egypt plug a balance of payments shortfall and finance its budget deficit amid covid-19, with the funds put towards supporting healthcare and social programs for the vulnerable, advancing structural reforms, and boosting private sector growth and job creation.