News

Egypt Locks Down $6 Billion in Bilateral Financing for IMF Loan

Egypt Locks Down $6 Billion in Bilateral Financing for IMF Loan

6895483-money-of-the-world-dollars-euros-russian-roubles-thai-baht-turkish-lira-egypt-pounds-stock-photo

Egypt has secured the USD 6 billion in bilateral financing required to secure a USD 12 billion loan from the International Monetary Fund (IMF), Reuters reported Minister of Finance Amr El Garhy said on Tuesday.

Egyptian authorities reached a preliminary agreement with the IMF in August to receive a three-year extended fund facility worth USD 12 billion, which will be used to support the government’s ambitious reform program aiming to reduce the country’s budget deficit.

The USD 6 billion in bilateral financing, along with the floating of the currency and a cut in subsidies, was one of the requirements the IMF stipulated before giving the loan its final stamp of approval.

According to El Garhy, the bilateral financing was secured through a number of channels, including loans from the World Bank, Saudi Arabia and the United Arab Emirates, in addition to a USD 2.7 billion currency swap with China.

The fund announced that its board will be meeting this Friday to discuss giving the final approval for the loan and an official from Egypt’s finance ministry told Reuters that, if the loan goes through, Egypt could receive the first tranche of the loan – worth USD 2.75 billion – as early as next Tuesday.

Egypt has been struggling to regain its rapidly depleting foreign currency reserves since the ouster of Hosni Mubarak in 2011. In the five years since, Egypt’s foreign reserves have gone down more than 50 percent, from USD 36 billion to USD 19.041 billion as of October 2016.

World Travel Market: Tourism in Egypt, Greece, Turkey 'Getting Back on Track'
American University in Cairo President Promises Solutions After Students Protest Tuition Hikes

Subscribe to our newsletter


News

More in News

Lowest in Decades: Egypt’s Inflation Rate Drops to 2.4%

Egyptian StreetsNovember 10, 2019

Sufis March in Egypt to Celebrate the Birth of Prophet Muhammed

Egyptian StreetsNovember 9, 2019

Egyptians React to the Sad Death of Haitham Ahmed Zaki

Egyptian StreetsNovember 8, 2019

Egypt, Sudan and Ethiopia to Attempt Reaching Final Agreement for GERD by January 15

Egyptian StreetsNovember 7, 2019

International Congress of Egyptology Launches 12th Edition at Mena House

Egyptian StreetsNovember 4, 2019

Startups Without Borders Kicks Off a Massive Summit for Entrepreneurs in Cairo

Egyptian StreetsNovember 4, 2019

Egypt’s State of Emergency Is Extended for the Tenth Time

Egyptian StreetsNovember 4, 2019

PM: Sunday an Official Holiday for Prophet’s Birthday

Egyptian StreetsNovember 3, 2019