Home News Egypt has announced plans to take out a new IMF loan

Egypt has announced plans to take out a new IMF loan

44
0

Egyptian Prime Minister Mustafa Madbouli announced on Sunday that the Cairo government is likely to receive a new loan from the International Monetary Fund (IMF).

“Egypt is heading for negotiations with the IMF to receive additional funding in addition to the technical funding agreed before the Russian-Ukrainian crisis,” he told a news conference in Cairo, at which the head of government presented a program of measures. to overcome the global economic problems caused by the situation in Ukraine.

According to Madbuli, an agreement with the IMF is planned in a few months. “The program will be implemented in a few months,” he said, without giving details about the future agreement, adding that “it will include a financial aspect.”

Before the onset of the Ukrainian crisis, the IMF said, the IMF had first reduced its growth forecast for the Egyptian economy to 5.6%, but later raised it to 6%. Madbouli acknowledged that the Egyptian economy has experienced a massive outflow of foreign investment from the domestic debt market, which amounted to about $ 20 billion. These investments, called “hot money”, are one of the main sources of foreign exchange in the country, along with tourism revenues and remittances from Egyptians abroad.

Read:   Inflation broke a new record in the eurozone. The largest increase in consumer prices since 1997

In February, the Central Bank of Egypt introduced measures against importers that significantly slowed down the import process and drew criticism from the business community. Those restrictions were partially lifted last week. The value of the local currency fell by more than 15% in March, and foreign exchange reserves also fell. This was also facilitated by a 1% increase in the interest rate, after which the Egyptian pound fell by 18% against the dollar, reaching a minimum value in the last five years.

In March, Egypt called for assistance from the IMF to implement a comprehensive economic program amid the crisis around Ukraine. In 2016-2019, Cairo received a loan from the IMF worth about $ 12 billion for economic reforms. The Arab Republic is currently carrying out the second stage of structural reforms in the public sectors of the economy. Last year, two more loans totaling $ 8 billion were provided to Egypt through various funding mechanisms to address the negative effects of the coronavirus pandemic.

Read:   Jeff Bezoz became $ 20 billion richer on the day Meta suffered the biggest loss of a US company on the stock market

If you like this article, we look forward to joining the community of readers on our Facebook page, with a Like below:

Previous articleBloomberg: EU has drawn up plan to buy Russian gas without violating sanctions
Next articleWill the cigars save the Cuban tourism industry? Havana, looking for new ideas