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Egypt on the verge of securing IMF funding as talks enter final stage

Published

2 years ago

August 23, 2022

The Egyptian government says it is in the final stage of talks with the International Monetary Fund (IMF), to secure new funding in the aftermath of growing economic crisis brought about by the Russia-Ukraine war.

Prime Minister Mostafa Madbouli who announced the progress of the talks during the Logos Coptic Youth Forum held in Alexandria on Monday, said the north African country had no choice but to source for funding from the IMF.

While previewing the most prominent economic files that the government is working on, Madbouli noted that though Egypt has achieved huge growth rates due to the economic reform program of President Abdel Fattah El-Sisi, the government has adopted to approach the international money lender as the economy has been affected by the coronavirus pandemic and the Russia-Ukraine war crisis.

The process for the loan was laid in July when Finance Minister, Mohamed Maait, pointed out that Egypt was working out the remaining points of difference with the IMF over a new extended fund facility.

Maait had then affirmed that talks with the IMF were ongoing and that they had achieved “very, very good progress.”

The value of the loan has not yet been set but Maait noted on the sidelines of the general assembly meeting of the African Reinsurance Corporation (Africa Re) in Cairo that Egypt had been talks with the IMF since March with the bulk of the discussion centred on a new program that seeks to support Egyptian state’s plans of national comprehensive economic reform.

The new program with the IMF aims at supporting the structural reforms that boost the Egyptian national economy without placing any burdens on citizens, Maait had said.

In the last decade, Egypt has had to turn to the IMF on more than three occasions to serk for a financial leeway, including borrowing $2.8 billion and $5.2 billion in May and June 2020 respectively in addition to $12 billion loan it accessed in 2016.

Related Topics:Economy Egypt Featured IMF loan

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Moroccan annual inflation rises to 0.8% in November

Published

23 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”