Egypt is set to receive a $1.2 billion disbursement from the International Monetary Fund (IMF) this month as part of an ongoing $8 billion Extended Fund Facility program, according to Finance Minister Ahmed Kouchouk.
Speaking during an interview with ON TV on Sunday, Kouchouk confirmed that the IMF’s executive board would meet in January to finalise the approval.
“God willing, we will receive the amount in January,” Kouchouk stated, adding that Egypt had not requested any increase to the existing $8 billion loan agreement.
The anticipated funding comes as Egypt grapples with economic pressures, including high inflation and a shortage of foreign currency. The country’s economic challenges have been exacerbated by a sharp decline in revenue from the Suez Canal, attributed to regional tensions over the past year.
The $8 billion program with the IMF, agreed upon in March 2024, aims to address Egypt’s pressing economic issues and bolster its fiscal stability. Last month, the IMF announced a staff-level agreement with Egypt following the fourth review of the 46-month arrangement, paving the way for the $1.2 billion disbursement.
In addition to the IMF funding, Kouchouk revealed that Egypt is targeting $3 billion through “diverse issuances” for the remainder of the current fiscal year, which ends in June. While he did not provide details, his response came in the context of a question about potential new bond offerings for foreign investors.
Egypt’s economy has faced significant headwinds in recent years. Inflation remains persistently high, while the shortage of foreign currency has strained imports and other financial operations. The decline in Suez Canal revenue, a key source of foreign exchange, has further compounded the crisis.
The IMF program and external financing efforts are critical components of Egypt’s strategy to stabilise its economy and attract foreign investment. The success of these measures will likely determine the country’s ability to weather its current challenges and support long-term growth.
Melissa Enoch
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