Egyptian Finance Minister Mohamed Maait announced Monday that a tranche of $ 1.6 billion from the International Monetary Fund (IMF) is expected to arrive by the end of December.
The IMF approved in June a stand-by loan (SBA) of $ 5.2 billion over 12 months for Egypt. The new agreement aims to help Egypt meet the challenges posed by the coronavirus pandemic by providing IMF resources to meet Egypt’s balance of payments needs and finance its budget deficit.
An IMF team held a virtual meeting with Egyptian officials from November 4 to 15 to discuss economic developments and the first review of Egypt’s economic program backed by the IMF’s 12-month SBA.
IMF team leader in Egypt Uma Ramakrishnan said the IMF and Egyptian authorities have reached a staff level agreement on the first review of Egypt’s economic program supported by the Standby Agreement of $ 5.2 billion from the IMF.
Egypt earlier this year completed the last stage of its economic reform program, which was launched in 2016 after the country secured a $ 12 billion loan from the Fund.
These reforms included a series of measures, such as devaluing the country’s currency, easing capital controls, ending energy subsidies, reforming state-owned enterprises and overhauling monetary policy, all with the aim of restore long-term economic stability and growth.
The agreements are expected to restore the confidence of foreign investors in the Egyptian economy.
Edited translation of Al-Masry Al-Youm