The International Monetary Fund (IMF) has announced on Saturday its approval of a significant increase in the loan program provided to Egypt, amounting to approximately USD 5 billion (EGP 236 billion)
The loan program, initially set at USD 3 billion (EGP 142 billion) for 46 months, aims to bolster Egypt’s economic stability and will enable Egypt to immediately withdraw around USD 820 million (EGP 38 billion) from the IMF.
To address the issue of non-targeted fuel subsidies, which consume a significant portion of government expenditures, Egypt has raised prices on a wide range of fuel products.
The IMF stresses the importance of replacing these subsidies with targeted social spending as part of a sustainable fuel price adjustment package.
The IMF’s statement projects Egypt’s growth rate to slow to 3 percent in the fiscal year ending in June 2024, compared to 3.8 percent in the previous year. However, it anticipates a rebound to around 4.5 percent in the following fiscal year.
In addition to the IMF’s loan, the World Bank Group intends to provide over USD 6 billion (EGP 284 billion) to Egypt in the next three years, supporting government programs and the private sector.
Egypt’s Minister of Finance, Mohamed Maait, highlighted that the government has raised a total of USD 20 billion (EGP 947 billion) in support from various sources. These measures have enabled the implementation of the economic reform program agreed upon with the IMF.
Furthermore, the European Union has signed agreements in Egypt, including a financing package worth USD 8.6 billion (EGP 380 billion) over four years.
Comment (1)
economic stability? what’s that?