Egypt receives first tranche of IMF extended loan
Date
3/31/2024 3:46:01 AM
(MENAFN) During a press conference on Saturday, Egyptian Prime Minister Mostafa Madbouly announced that Egypt is poised to receive the first installment of the expanded loan agreement with the International Monetary Fund (IMF) in the upcoming week. Although Madbouly did not specify the exact amount, the IMF disclosed on Friday that the expanded financial support program, totaling USD8 billion, will enable the immediate disbursement of USD820 million.
The expansion of the agreement encompasses the augmentation of the Extended Fund Facility, initially valued at USD3 billion for a duration of 46 months since its signing in December 2022, to a total of USD8 billion. This decision by the IMF reflects a proactive response to the economic challenges facing Egypt, particularly in light of recent disruptions such as the conflict in Gaza and Houthi attacks on ships in the Red Sea. These events have notably impacted Egypt's vital sectors, including tourism and shipping, resulting in a significant reduction in revenues from the Suez Canal.
Tourism and shipping serve as Egypt's primary sources of foreign exchange, highlighting the importance of addressing the economic repercussions of these disruptions. The expanded IMF agreement is expected to provide much-needed financial support to mitigate the adverse effects on the Egyptian economy and facilitate its recovery.
The completion of the first and second reviews within the framework of the Extended Fund Facility for Egypt was announced by the Executive Board of the International Monetary Fund on Friday. This milestone signifies progress in the implementation of the IMF-supported program and underscores the commitment of both Egypt and the IMF to address economic challenges and promote sustainable growth. As Egypt prepares to receive the initial tranche of the expanded loan agreement, efforts to bolster economic resilience and foster recovery remain paramount in navigating the evolving global economic landscape.
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