IMF to Disburse $1.2 Billion to Egypt as Economic Woes Continue

Egypt is expected to receive a US$1.2 billion disbursement from the International Monetary Fund (IMF) this month as part of an US$8 billion programme with the international lender, according to Finance Minister Ahmed Kouchouk.

IMF Disbursement Imminent

The IMF announced last month that it had reached a staff-level agreement with Egypt on the fourth review of the 46-month extended fund facility arrangement, potentially unlocking the US$1.2 billion disbursement. Kouchouk stated that the IMF’s executive board will convene in January, and “God willing, we will receive the amount in January.” He also clarified that Egypt had not requested an increase to the US$8 billion loan.

Economic Woes Continue

Egypt’s economic woes have been compounded by a sharp decline in Suez Canal revenue caused by regional tensions over the past year. The country has been grappling with high inflation and shortages of foreign currency. To address these issues, Egypt agreed to the expanded IMF programme in March.

Targeting $3 Billion in Diverse Issuances

Kouchouk also announced that Egypt is targeting about US$3 billion in the remainder of the current fiscal year, which runs until the end of June, through “diverse issuances” to investors. He did not elaborate further on the specifics of these issuances, but stated that this amount will be raised through a variety of means, including potential bond offerings to foreign investors.

Frequently Asked Questions

Q: When can Egypt expect to receive the US$1.2 billion disbursement from the IMF?
A: Egypt is expected to receive the disbursement in January, pending the IMF’s executive board approving the disbursement.

Q: Has Egypt requested an increase to the US$8 billion loan?
A: No, Egypt has not requested an increase to the US$8 billion loan.

Q: What is Egypt’s plan for raising the remaining US$3 billion in the current fiscal year?
A: Egypt is targeting about US$3 billion through “diverse issuances” to investors, without providing further details on the specifics of these issuances.

Q: Will Egypt offer new bonds to foreign investors this year?
A: The finance minister did not provide a direct answer to this question, but stated that Egypt is targeting US$3 billion through “diverse issuances” to investors, which may include bond offerings to foreign investors.