Egypt is set to receive a $1.2 billion disbursement from the International Monetary Fund (IMF) this month, as part of an $8 billion Extended Fund Facility program, according to Finance Minister Ahmed Kouchouk.
Details of the IMF Program
- The IMF reached a staff-level agreement with Egypt last month on the fourth review of the 46-month program.
- The IMF Executive Board is expected to approve the disbursement in January.
- Egypt has not requested any increase to the $8 billion loan.
Economic Context
Egypt has been facing:
- High inflation and foreign currency shortages have strained its economy.
- A sharp decline in Suez Canal revenue due to regional tensions further compounded its financial challenges.
The IMF program agreed upon in March 2024, aims to stabilize Egypt’s economy and address these vulnerabilities.
Future Financial Plans
- Kouchouk revealed Egypt is targeting $3 billion in financing through “diverse issuances” before the end of the fiscal year in June 2025.
- While specific details were not disclosed, the statement hints at potential bond offerings to foreign investors.
This latest disbursement is a critical step in Egypt’s broader strategy to address its economic difficulties and maintain investor confidence amidst challenging times.
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Source: MARINE LINK
