Egypt to receive initial tranche of IMF expanded loan next week: PM

Ahram Online , Sunday 31 Mar 2024

Prime Minister Mostafa Madbouly disclosed that Egypt is set to receive the initial tranche of $820 million from the International Monetary Fund (IMF) expanded loan next week, along with the second tranche from the Ras El-Hekma deal in early May.

Egyptian Prime Minister Mostafa Madbouly
Egyptian Prime Minister Mostafa Madbouly


In remarks following a tour of five factories in the 10th of Ramadan City, the prime minister underscored confidence in Egypt's economic prospects.

He reiterated that Egypt's future hinges on bolstering productive sectors such as agriculture, tourism, industry, and telecommunications.

He highlighted the narrowing gap in the state’s US dollar reserves, attributing it to increased domestic manufacturing and production.

He also reaffirmed the country’s plan to increase its exports threefold from $53 billion to $145 billion within six years under the ongoing economic reform programme.

Furthermore, he emphasized the significance of private sector investments in driving economic growth, highlighting their role in job creation and the provision of high-quality goods for the local market.

In this regard, Madbouly reiterated the government's steadfast support for such investments and further inflow of capital.

Since February, the government has taken several actions to provide US dollar liquidity in the local market to release the stockpiled goods in ports and keep market stability amid rising inflation.

On Friday, the Executive Board of the International Monetary Fund (IMF) completed the first and second reviews of Egypt’s 46-month Extended Fund Facility arrangement with Egypt and approved an expansion of the original programme by about $5 billion.

Weeks ago, the World Bank Group (WBG) announced new financing to Egypt of over $6 billion over the next three years.

Furthermore, the European Union (EU) has pledged more than $8 billion in loans and financing to support the country’s economy amid the repercussions of the Gaza and Sudan wars.

In early March, the signing of the $35 billion investment deal of Ras El-Hekma with the United Arab Emirates – the largest foreign direct investment (FDI) in Egypt’s history – buoyed the Egyptian economy.

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