IMF Team In Cairo To Review Second Installment Of $12-billion Loan

By Amina Ismail

IMF with maps

An International Monetary Fund (IMF) delegation will arrive in Cairo on Sunday to review Egypt’s progress on economic reforms before it disburses the second instalment of a $12-billion loan programme, the Finance Ministry said.

The IMF delegation will stay until May 11 and meet with officials from the ministry and the central bank, the ministry said in a statement.

Egypt agreed the three-year programme with the IMF in November, after floating its Egyptian pound currency in a dramatic move aimed at unlocking foreign inflows and boosting exports after a long-running dollar shortage threatened to paralyse the economy.

It promised a raft of tough reforms, including narrowing its budget deficit, in return for the $12-billion loan package from the IMF and a host of other bilateral backers with payments spread over three years and linked to progress on reforms.

The IMF released a first instalment of $2.75 billion in November, shortly after the deal was agreed.

Egypt has said it expects to receive the second instalment, worth $1.25 billion, in May or June, once the IMF review has been completed.

IMF Managing Director Christine Lagarde told Reuters in February Egypt was making good progress on reforms.

As part of reform efforts, Egypt has introduced a Value Added Tax (VAT) and secured $4 billion in eurobonds from international markets in an oversubscribed issuance.

It is also part way through a programme to reform power and fuel subsidies and is preparing to privatise several state owned banks and energy companies.

(Editing by Lin Noueihed)


Sign up for Updates

Leave a Reply

Your email address will not be published. Required fields are marked *

Notify me of new posts by email.