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Egypt to get first instalment of increased IMF loan next week

Published

8 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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IMF mission concludes 4th loan program assessment in Egypt

Published

3 days ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

4 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.