Egypt signs agreement with IMF to extend current loan deal to $8 billion

Ahram Online , Wednesday 6 Mar 2024

Egypt signed an agreement with the International Monetary Fund (IMF) to extend the current $3 billion loan deal to $8 billion.



The agreement was announced on Tuesday in a press conference attended by Prime Minister Mostafa Madbouly, Governor of the Central Bank of Egypt (CBE) Hassan Abdullah, and the head of the IMF mission Ivanna Vladkova Hollar.

In remarks during the event, PM Madbouly stressed that the agreement with the IMF comes within the framework of integrated structural reform policies for the economy prepared by the government.

 "This program is Egyptian and was prepared by the government and the Central Bank of Egypt," he noted.

Madbouly added that the program targets very clear indicators by increasing the monetary reserve of hard currency; reducing domestic and foreign debt; ensuring the flow of direct foreign investments; increasing the growth rate of the Egyptian economy; reducing inflation; creating job opportunities; and strengthening social protection programs.

Egypt is currently under a $3 billion Extended Fund Facility (EFF) loan programme with the IMF.

The announcement came hours after the CBE decision to float the Egyptian pound (EGP) and raise interest rates by six percent, in a bold move to meet economic challenges.

The World Bank and the European Union, Egypt's development partners, would provide new soft loans to the country based on the new IMF deal, Madbouly added.

"We will be able to apply to the Environmental Sustainability Fund to obtain another loan, ranging from $1 to $1.2 billion," the PM said.

The government aims to increase partnership with the private sector and help it become a driving force in economic growth, he said.

"The government has set a cap on total public investments at EGP 1 trillion as part of an integrated programme that enables us to achieve monetary stability," he stressed.

All recent economic decisions reflect the state's goal of maximising the use of its assets, he added.

Meanwhile, Governor of the Central Bank of Egypt (CBE) Hassan Abdallah said fruitful cooperation between Egypt and the IMF aims to achieve economic reform goals.

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