(MENAFN) In a pivotal development underscoring international financial cooperation, the U.S. Treasury Department has confirmed that Secretary Janet Yellen is scheduled to convene with high-ranking Egyptian finance officials in Washington on Tuesday. This crucial meeting unfolds against the backdrop of ongoing negotiations between Cairo and the International Monetary Fund (IMF), as Egypt seeks additional financial support amidst challenging economic circumstances.
Egypt finds itself grappling with escalating levels of foreign debt, exacerbated by a confluence of adverse events ranging from the repercussions of conflicts in the Gaza Strip to disruptions in critical sectors such as tourism and natural gas imports. These challenges have been further compounded by security incidents targeting shipping routes in the Red Sea, in addition to previous destabilizing factors like the Ukraine conflict and the global ramifications of the COVID-19 pandemic.
The intricacies of Egypt's financial engagements with the IMF have witnessed certain complexities. Specifically, a USD3 billion loan program previously negotiated between Egypt and the IMF in December 2022 encountered delays, primarily attributed to Egypt's reluctance to permit its currency to float freely and its limited progress in advancing the sale of state assets. Consequently, the IMF opted to defer the disbursement of approximately USD700 million earmarked for 2023. However, in a subsequent development, the IMF intimated in December its ongoing discussions to potentially expand the financial assistance program, acknowledging the heightened economic vulnerabilities stemming from regional conflicts involving Israel and Gaza.
While details remain somewhat nebulous, with no official confirmation from the International Financial Corporation (IFC) regarding potential engagements with Egyptian authorities, the U.S. Treasury Department has delineated the attendees for Secretary Yellen's upcoming discussions. Alongside Egyptian Finance Minister Mohamed Maait, the meetings are set to include International Cooperation Minister Rania Al-Mashat and Central Bank Governor Hassan Abdullah, underscoring the significance and scope of the deliberations scheduled to transpire.
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