The International Monetary Fund (IMF) executive board approved on Friday 46-month $3 billion arrangement under the Extended Fund Facility (EFF) for Egypt, an approval that enables an immediate disbursement of $347 million.
“Over the course of the programme, the EFF is expected to catalyse additional financing of about $14 billion from Egypt’s international and regional partners, including new financing from GCC countries and other partners through the ongoing divestment of state-owned assets as well as traditional forms of financing from multilateral and bilateral creditors.” the Fund said in a statement.
Kristalina Georgieva, managing director and chairman of the IMF board, said: “Egypt showed resilience to the COVID-19 crisis, supported by previous Fund-supported programs. While economic recovery gained momentum in 2021, imbalances also started building amidst a stable exchange rate, high public debt, and delayed structural reforms.
“Russia’s war in Ukraine crystallised these pre-existing vulnerabilities, triggering capital outflows, and, in the context of a still-stabilised exchange rate, reduced the central bank’s foreign reserves and banks’ net foreign assets and widened the exchange rate misalignment.”
