Egypt Secures $1.2 Billion IMF Disbursement Amid Economic Challenges

Egypt is set to receive a $1.2 billion disbursement from the International Monetary Fund this month as part of an $8 billion program with the international lender, according to Finance Minister Ahmed Kouchouk. Last month, the IMF announced a staff-level agreement with Egypt on the fourth review of the Extended Fund Facility arrangement, potentially unlocking the $1.2 billion disbursement. Kouchouk stated that the IMF’s executive board will convene in January, with Egypt expected to receive the funds in the same month. He also mentioned that Egypt had not requested an increase to the $8 billion loan.

The decision to expand the IMF program in March was made by Egypt, which has been facing challenges such as high inflation and shortages of foreign currency. These economic difficulties were further exacerbated by a significant decrease in Suez Canal revenue due to regional tensions over the past year. Kouchouk also revealed that Egypt is aiming to secure around $3 billion in the remaining months of the current fiscal year, ending in June, through various offerings to investors. When asked about the possibility of issuing new bonds to foreign investors this year, Kouchouk did not provide specific details.

In response to Egypt’s economic struggles, the country agreed to an $8 billion program with the IMF, with a $1.2 billion disbursement expected this month. The agreement, reached after the fourth review of the Extended Fund Facility arrangement, did not involve a request for an increase in the loan amount. Egypt’s economic challenges, including high inflation and foreign currency shortages, were compounded by a decline in Suez Canal revenue caused by regional tensions. The country is now looking to raise approximately $3 billion through various investor offerings in the remaining months of the fiscal year.

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