Egypt to receive 4th tranche of EFF loan within days: IMF executive director - Economy
Egypt will receive the $1.2 billion fourth tranche of its loan under the Extended Fund Facility (EFF) programme within days, International Monetary Fund (IMF) executive director Mohamed Maait told Al-Arabiya Business via phone interview on Tuesday.
Maait indicated that the IMF's Executive Board recognizes and appreciates the economic reforms implemented in Egypt since March 2024, including reducing the inflation rate and increasing foreign reserves to $47.4 billion, as well as the Ministry of Finance's efforts to achieve a primary surplus and reduce public debt.
Maait stated that the IMF understood Egypt's requests to postpone certain measures within the economic reform programme and to lower the targeted primary surplus in the public budget.
This review, discussed in a Monday meeting, is the first to be completed after the fund had raised the original amount of the loan under the programme from $3 billion to $8 billion in response to the Egyptian government's request to address the consequences of the regional geopolitical tensions.
The meeting was expected to decide on Egypt's request to secure a $1.3 billion loan under the Resilience and Sustainability Facility (RSF). However, the Fund has yet to announce the results of the meeting.
The RSF provides affordable long-term financing to countries undertaking reforms to reduce risks to prospective balance of payments stability, including those related to climate change and pandemic preparedness.
'The authorities would have access to $1.2 billion under the EFF programme; in addition, it would be subject again to approval by our executive board regarding the RSF. The size of the RSF would be about $1.3,' director of the IMF Communications Department Julie Kozack told Ahram Online earlier this month.
Additionally, the IMF was meant to hold a media roundtable on Tuesday following the anticipated approval of the review, but the event was delayed due to 'technical issues.'
Finance Minister Ahmed Kouchouk stated that the IMF approved the disbursement of the fourth tranche of Egypt's loan as part of an extended support program worth $8 billion.
In December, the IMF announced that it reached a staff-level agreement regarding the fourth review under the EFF with Egypt, enabling the disbursement of $1.2 billion as part of the programme, a total loan signed by Egypt in March 2024 spanning 46 months.
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