Egypt Receives $3 Billion IMF Loan, Another $6 Billion Could Follow

As of 27 October 2022, the International Monetary Fund (IMF) and Egypt have reached an agreement for EGP 68 billion (USD 3 billion), according to an IMF press release. The loan comes in the form of a staff-level agreement to implement comprehensive economic policies and reforms for a 46-month period during Egypt’s ongoing economic struggles. The agreement “aims to safeguard macroeconomic stability and debt sustainability, improve Egypt’s resilience to external shocks, strengthen the social safety net, and step-up reforms that underpin higher private-sector-led growth and job creation,” according to the IMF’s press release. Another EGP 136.8 billion (USD 6 billion) could follow, the statement predicts. This forecasted agreement is divided into an EGP 114 billion (USD 5 billion) multi-year financing package to be triggered for the fiscal year 2022/23, which “reflects broad international and regional support for Egypt,” and an EGP 22 billion (USD 1 billion) pending finance request to the IMF’s newly created Resilience and Sustainability Facility. “Egypt’s international and regional partners [intend] to maintain economic stability, address macroeconomic imbalances and spillovers from the war in Ukraine, protect livelihoods, and push forward deep structural and governance reforms to promote…

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