The International Monetary Fund (IMF) is “seriously considering” a possible augmentation of Egypt’s $3 billion loan programme.
The IMF Managing Director, Kristalina Georgieva told journalists on Friday that the body’s consideration was due to the economic difficulties posed by the Israel-Hamas war.
The conflict is “devastating” Gaza’s population and economy, Georgieva told Reuters in an interview conducted on the fringes of the Asia Pacific Economic Cooperation Summit.
It also has “severe impacts” on the West Bank’s economy and is causing problems for neighbouring countries, including Egypt, Lebanon, and Jordan, as a result of decreased tourism and increased energy costs, she said.
Egypt’s annual urban consumer price inflation rate fell to 35.8% in October from a record high of 38.0% in September, according to data that was less anticipated by analysts and came from the nation’s statistics agency, CAPMAS.
Apart from its discussions with multilateral bodies, Egypt’s government also recently reached an agreement with private producers and merchants to reduce the price of staple goods by 15–25% and exempt them from customs charges for six months in an effort to combat food inflation.
