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

More in News

Egypt’s Unemployment Rate Down to 10 Percent in Q3 of 2018

Egyptian StreetsNovember 16, 2018

Egypt ‘Appreciates’ and ‘Trusts’ Final Saudi Investigation into Khashoggi Killing

Egyptian StreetsNovember 16, 2018

Archaeological Mission Unearths Ancient Pregnant Woman Burial

Egyptian StreetsNovember 14, 2018

Egyptian MP to Submit Bill Omitting Religion from National IDs to Parliament

Egyptian StreetsNovember 12, 2018

British Parliament Encourages Lifting the Travel Ban Imposed on Sharm El Sheikh

Nour EltiganiNovember 11, 2018

Egyptian Film ‘Yomeddine’ Wins at Geneva Film Festival

Mirna AbdulaalNovember 10, 2018

UN: Food Aid to Be Doubled to 14 Million Yemenis to Avert Starvation

Mirna AbdulaalNovember 10, 2018

Bedouin Tribes of ‘Sinai Trail’ Get Backing From Egypt’s Ministry of Tourism

Mirna AbdulaalNovember 10, 2018
Egyptian Streets is an independent, young, and grass roots news media organization aimed at providing readers with an alternate depiction of events that occur on Egyptian and Middle Eastern streets, and to establish an engaging social platform for readers to discover and discuss the various issues that impact the region.

© 2017 Egyptian Streets. All Rights Reserved.