Commenting on reports that Egypt may seek to increase IMF loan to $ 4.8 billion, Hany Genena, CFA, Head of Research, Pharos Securities Brokerage, said this news will be extremely positive if approved.
The Minister of Finance announced that Egypt may seek to increase the International Monetary Fund (IMF) loan size to $ 4.8 billion versus the originally announced $ 3.2 billion. IMF chief Christine Lagarde will visit the country on August 22nd to discuss the loan.
Genena indicated that this new size of the loan is 3x the size of Egypt’s quota at the IMF. IMF members are allowed to borrow up to 200.0% of their quota in stand by arrangements but this limit may be extended on a case by case basis subject to enhanced scrutiny. He added that Lagarde attendance signifies that talks are shifting from a technical to a strategic level.
