IMF held productive discussions on Egypt’s new loan: Mission head

Doaa A.Moneim , Friday 8 Jul 2022

The International Monetary Fund (IMF) concluded on Thursday a staff-level mission to Egypt – through a team led by IMF mission chief for Egypt Celine Allard – to discuss a new loan programme with Egypt, the Fund announced on Friday.

File photo of the International Monetary Fund headquarters in Washington D.C. (AFP)


In March, Egypt submitted a request to the IMF for a new loan in order to keep the gains of the first wave of the country’s economic reforms and meet the country’s financial needs in response to the global economic challenges amid the ongoing Russia-Ukraine war.

The IMF said that the visit lasted from 26 June to 7 July to discuss IMF support for the Egyptian authorities’ comprehensive economic reform program.

“The IMF staff team and the Egyptian authorities had productive discussions on economic policies and reforms to be supported by an IMF Extended Fund Facility (EFF). In the period ahead, we are continuing our close engagement with the authorities towards reaching staff level agreement. As is always the case, final agreement on a program arrangement would be subject to approval of the IMF's Executive Board,” said Allard.

“The IMF team would like to thank the Egyptian authorities and the technical teams at the Central Bank of Egypt and the Ministry of Finance, and other interlocutors for their hospitality and the constructive and candid discussions,” Allard said.

Minister of Finance Mohamed Maait said in June that the anticipated deal with the IMF could be under the Extended Fund Facility (EFF) for four years, but a programme under the Stand-by Arrangement (SBA) and the Financial Programming and Policies are also on the table, Egypt’s Minister of Finance Mohamed Maait told Bloomberg TV.

During June, Fitch Solutions expected the loan amount to come to $6.5 billion, while BNP Paribas projected it at $10 billion in May.

The first wave of Egypt’s economic reforms (2016-2019) was backed by a $12 billion IMF loan to Egypt under the EFF facility in 2016 over three tranches.

The EFF is designed to provide assistance to countries experiencing serious payment imbalances because of structural impediments or slow growth and an inherently weak balance-of-payments position. 

It also provides support for comprehensive programs including the policies needed to correct structural imbalances over an extended period.

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