IMF approves $46.4 bln in loans for 18 countries since November

Doaa A.Moneim , Thursday 18 Apr 2024

The International Monetary Fund (IMF) has approved $46.4 billion for 18 member countries since November 2023, the IMF’s Managing Director’s Global Policy Agenda 2024 revealed on Thursday.



The agenda's release came on the sidelines of the annual meetings (Spring Meetings) held by the World Bank Group and the IMF in Washington.

The Managing Director of the IMF, Kristalina Georgieva, stated that economic activity has shown resilience in many parts of the world despite a series of adverse shocks.

“Since last fall, the forecast for global growth in 2024 has been upgraded to 3.2 percent from 2.9 percent, although the aggregate masks continued weaknesses in some countries, giving rise to a widening cross-country divergence,” Georgieva said.

She added that inflation has fallen faster than expected in most regions thanks to still-tight monetary policy, easing supply pressures, and the unwinding of earlier energy price rises.

According to Georgieva, risks to the outlook are increasingly balanced, although salient downside risks remain.

She noted that much rests on the near-term path for inflation and interest rates – particularly with recent data indicating persistence in inflation and asset prices – financial sector risks, fiscal policy, and geopolitical developments.

Furthermore, Georgieva highlighted that the extraordinary policy response to successive shocks has depleted buffers, leaving countries with reduced policy space and elevated debt levels.

“All this while medium-term global growth is forecast at just 3.1 percent, well below the 3.8 percent average over 2000–2019. Growth is being held back by weak productivity, partially due to misallocation of capital and labour, and geoeconomic fragmentation threatens to undo decades of gains from cross-border economic integration,” said Georgieva.

In this respect, Georgieva stressed that strong policy action is needed to address the ongoing challenges globally. This policy should focus, according to Georgieva, on some key priorities, including rebuilding buffers depleted by shocks, reviving sustainable and inclusive medium-term growth, and renewing the IMF’s commitment to ensure that the fund’s policies, lending toolkit, and governance remain fit for purpose.

Egypt has been a member of the IMF since 1945. Since 2016, Egypt has sealed four loan agreements worth almost $29 billion. The most recent deal is the $8 billion Extended Fund Facility (EFF) loan programme that extends till 2026.

Egypt also seeks a $1.2 billion loan under the Resilience and Sustainability Trust, dedicated to climate action-related projects.

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