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Egypt in final stages of securing $3bn IMF loan

August 25, 2022 at 11:56 am

An Egyptian man operates machinery in an oil production factory in Egypt, 20 September 2012 [Ed Giles/Getty Images]

Egypt is in the final stages of signing a new financing agreement with the International Monetary Fund (IMF) worth $3 billion to continue with its economic reform programme, local media outlets reported, citing informed sources.

According to the sources, it is expected that the new loan agreement will be signed during the coming period, after routine procedures are completed.

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The sources said Cairo had originally planned to obtain between $5-$10 billion, however IMF officials demanded Cairo meet a number of conditions including the complete lifting of subsidies on fuel and bread to reduce the budget deficit and liberalising the US dollar exchange rate against the Egyptian pound among other measures.

The IMF has also demanded that the government exit from the various productive sectors and allow the private sector to take over them.

The sources pointed out that the Egyptian side did not agree to all the conditions, especially the one related to completely lifting subsidies from foodstuffs in an effort to maintain public stability.