IMF Board to Review Egypt’s Loan

IMF Board to Review Egypt’s Loan

International Monetary Fund’s (IMF) Director of the Middle East and Central Asia department at the , Masood Ahmed, announced the $2.5b first tranche of the IMF’s $12b loan will be made available to Egypt after the IMF’s executive board reviews the program, reported Daily News Egypt. He added that Egypt’s funding package will be presented to the fund’s executive board by the end of October or early November.

The IMF is working to secure the necessary funding to close the gap ranges between $5b and $6b of the first year,  in addition to obtaining the approval of the fund’s executive board. He added that talks with Saudi Arabia and China are ongoing in this regard.

Accordingly, the fund’s Managing Director, Christine Lagarde, stated on the that “the IMF needs to evaluate the economic reforms of the Egyptian government,” as Egypt almost completed the required measures for the loan, yet some actions related to the exchange rate and subsidies are still pending. Upon completion the executive board will meet to approve the second tranche of the loan, informed Bloomberg.

Lagarde comments are aligned with Ahmed’s explanation that Egypt is facing several problems, particularly unemployment, the exchange rate, and the rising volume of dues. However, he added that steps taken by the government, especially moving towards liberalizing the exchange rate, creating jobs for women, and protecting children from labour, are welcomed.

Sarah Samir 3420 Posts

Sarah has been writing in the oil and gas field for 8 years. She has a Bachelor Degree in English Literature. She has three years of experience in the banking sector.

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