The Clap
Subject to International Monetary Fund (IMF) board approval, Egypt is set to unlock another USD 820 million of its USD 8 billion loan with the IMF.
What
The news came after the IMF reviewed Egypt’s reform progress last month.
Some Context
Expanded from an original USD 3 billion loan agreed on in December 2022 — a new package of up to USD 8 billion was approved after the CBE’s 600 bps interest rate hike and another devaluation of the EGP three months ago.
So What
“While geopolitical tensions and their impact on Egypt remain challenging, the authorities have stayed the course to preserve macroeconomic stability through fiscal discipline, tight monetary policy, and a shift to a flexible exchange rate regime. These efforts are beginning to deliver an improved outlook, improved FX availability, inflation starting to slow down, and signs of recovery in private sector sentiment,” IMF Mission Head Vladkova Hollar said.
Now What
Negotiations are also in progress to grant Egypt access to an extra USD 1.2 billion in low-cost, long-term climate funding under the IMF’s Resilience and Sustainability Facility.
