News

Egypt Will Begin Repaying IMF Loan in 2021

mm
Egypt Will Begin Repaying IMF Loan in 2021

AP Photo/Cliff Owen

Egypt will start the repayment of the International Monetary Fund (IMF) loan in May 2021.

According to Egypt Independent and Al Masry Al Youm government sources announced the decision on Saturday, clarifying that it would begin with a US $2.75 billion tranche.

This would be followed by equal installements that would end by 2026.

Mohamed Maeet, the Minister of Finance, stated that the IMF loan would conclude next year with no plans of extension or further loans.

Maeet also explained that the economic reforms, aided by the IMF loan, put in place by the governmemt have improved the economy. He also said that the loans needed to be paid without delay.

The Minister added that these reforms aid the government in providing social protection, infrastructure and public services.

In exchange for issuing the $12bn loan program, Egypt devalued its currency in November last year and cut down on state subsidies. Following the currency devaluation, the value of the Egyptian pound halved against the greenback and inflation skyrocketed, reaching record levels of over 30 percent.

Prior to the flotation measure, which was a key demand from the IMF, there had been a wide gap between the value of US dollars in banks and in the parallel market. Following the flotation, the lender agreed to loan Egypt $US 12 billion in an attempt to restore its economy.

So far, Egypt has received $US 8 billion out of the 12 billion. It received its first instalment in 2016.

In return, the government has been slowly removing its subsidies from gas, water, electricity among other services.

The country is to receive its next tranche following review and approval of the Executive Board in Washington.

Egyptian Police Track and Arrest WhatsApp Sexual Harasser
Egypt Embarks on Space Journey with New Satellite


Subscribe to our newsletter


News
mm

Cairo-based and with nine years of experience in journalism, Sara is deputy editor-in-chief and managing editor of Egyptian Streets. She holds two Bachelors (Egyptology and Journalism) from the American University in Cairo (2011). Her interests include history, comparative archaeology, gender, religion, minority rights, science fiction, and the environment.

More in News

Egypt-Qatar Summit: Newly Reconciled Countries Committed to Furthering Cooperation

Eleonora Christo Vostanis26 June 2022

UN Concludes Palestinian Journalist Shireen Shireen Abu Akleh Killed by Israeli Forces

Egyptian Streets25 June 2022

Former Al-Azhar Dean Condemned for Victim-Blaming Murdered Mansoura Student

Mona Abdou22 June 2022

Egypt Loses $23 Billion from COVID-19, Ukraine Conflict

Shereif Barakat21 June 2022

Egyptian Woman Slaughtered at University ‘For Rejecting Man’

Amina Zaineldine20 June 2022

Egyptians Can Now Apply to Join Netflix’s ‘Squid Game’ Reality Show

Eleonora Christo Vostanis18 June 2022

Arrivals to Egypt No Longer Need to Worry About COVID-19 Restrictions

Egyptian Streets17 June 2022

Egypt’s Prime Minister Urges Egyptians to Rationalize Food Consumption

Egyptian Streets16 June 2022