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Egypt to receive first tranche of expanded IMF loan next week

March 30, 2024 at 1:55 pm

International Monetary Fund (IMF) [Flickr]

Egypt will receive the first tranche of an expanded loan agreement with the International Monetary Fund (IMF) next week, Prime Minister Mostafa Madbouly said during a news conference on Saturday, Reuters reports.

Madbouly did not specify the figure, but the IMF said on Friday the expanded $8 billion financial support program enables the immediate release of $820 million.

The agreement expands a $3 billion, 46-month Extended Fund Facility signed in December 2022 which was put on hold after Egypt did not follow through on pledges to unpeg its currency, speed up the sale of state assets and implement other reforms.

The IMF agreed to widen the agreement after Egypt’s economy was further hurt by the Gaza crisis, which slowed growth in tourism and triggered attacks from Yemen on shipping in the Red Sea, halving Suez Canal revenue.

Tourism and shipping are two of Egypt’s main sources of foreign exchange.

READ: What’s behind the generous aid packages for Al-Sisi’s Egypt?