WASHINGTON: The Executive Committee of the International Monetary Fund on Friday approved a $3 billion loan to Egypt, disbursing $347 million immediately, the IMF said in a statement.
Egypt will benefit from a 46-month loan under the Expansion Fund Facility. The agreement covers 2,350.17 million SDRs (Special Drawing Rights). It is the IMF’s unit of account based on a basket of five major international currencies, worth approximately US$3 billion.
The loan was originally announced by the IMF on 27 October.
The Washington-based IMF has announced in exchange for an economic program aimed at “maintaining macroeconomic stability, restoring shock absorbers, and paving the way for sustainable, inclusive, private-sector-led growth.” , said it was granted financial assistance.
In particular, it refers to a “permanent transition to a flexible exchange rate regime” and the implementation of “monetary policies aimed at gradually reducing inflation.”
The measures should also enable the reduction of public debt and the implementation of “broader structural reforms” while “increasing social spending.”
Egypt is expected to receive about US$14 billion in additional financing “from international and regional partners” through the EFF program, the IMF added.
Russia’s invasion of Ukraine has dealt some heavy blows to Egypt. As the world’s largest wheat importer, it has been hit hard by soaring grain prices. It has also lost a significant share of tourists from Ukraine and Russia, her 40% of her 8 million tourists in 2021.-AFP