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Egypt to get first instalment of increased IMF loan next week

Published

9 months ago

March 30, 2024

Next week, Egypt will get the first instalment of a larger loan from the International Monetary Fund (IMF), according to Prime Minister Mostafa Madbouly, who announced at a press conference on Saturday.

Madbouly could not provide an exact amount, but the IMF said on Friday that $820 million can be released immediately thanks to an extended $8 billion financial support program.

The arrangement broadens the scope of a $3 billion, 46-month Extended Fund Facility that Egypt signed in December 2022 but had to postpone because it had not complied with promises to decouple its currency, accelerate the sale of state assets, and carry out other reforms.

The Gaza crisis severely damaged Egypt’s economy, slowing tourism growth and leading to Yemeni attacks on Red Sea shipping that cut Suez Canal earnings in half. As a result, the IMF decided to expand the deal.

The World Bank Group said last week that it will be providing more than $6 billion in aid to Egypt over the next three years. Egypt has been struggling with a foreign exchange problem that has slowed down economic activity and led to shortages of imported items.

The country is also aiming to earn $10 billion in four years through private investment in public assets by 2022. The country is selling assets to support the private sector and raise hard currency.

Related Topics:Egypt Egypt IMF loan Featured

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Moroccan annual inflation rises to 0.8% in November

Published

1 day 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.”