Egypt to Receive the Second Tranche of 46-Month IMF loan Next March
According to Daily News, the International Monetary Fund (IMF) approved in December 2022, a 46-month arrangement under the Extended Fund Facility (EFF) for Egypt to receive a loan of $3bn, with the agreement expected to draw in an additional $14bn in financing for the country.
According to a report published by the IMF on Tuesday, Egypt will receive the second tranche of the loan next March.
Egypt will receive a $347 million tranche (equivalent to 261.13 million Special Drawing Rights units) on March 15, 2023, the same amount it received after signing the loan agreement last December.
The fund explained further that the first tranche was disbursed last December, following the approval of the Executive Council, at a value equivalent to $347m.
The remaining loan will be disbursed in equal installments of $347 million (equivalent to 261.13 million Special Drawing Rights units) every March and September until 2026.
According to the fund, the authorities’ economic program, which is supported by the proposed EFF arrangement, aims to address macroeconomic vulnerabilities sustainably while also promoting private-sector-led growth and job creation.
The IMF explained further that the 46-month program aims to support both short- and medium-term goals and will be based on three broad pillars:
First, exchange rate and monetary policies should prioritize restoring external resilience and maintaining price stability to absorb external shocks, including ongoing war-related spillovers, improve FX market functioning, rebuild reserve buffers, and anchor inflation developments.
Second, fiscal discipline and fiscal structural policies will maintain market confidence and ensure the downward trajectory of the debt-to-GDP ratio while strengthening the budgetary process and improving the budget composition to make room for social spending.
Third, broad-based structural reforms will focus on the gradual exit of the public sector from non-strategic sectors, leveling the playing field between state-owned enterprises (SOEs) and private companies, removing trade barriers, and improving transparency and governance in the public sector.
