IMF Approves $2.5 Billion for Egypt After Fourth Loan Review

The IMF has approved a further $1.2 billion disbursement for Egypt following the fourth review of its $8 billion loan. In addition, a new $1.3 billion funding arrangement has been approved to enhance climate reform efforts. Despite progress, Egypt faces ongoing economic challenges, including high debt and mixed reform outcomes.

On Tuesday, the International Monetary Fund (IMF) announced the completion of the fourth review of Egypt’s $8 billion Extended Fund Facility loan, enabling the country to access approximately $1.2 billion immediately. This brings total disbursements under the program, which was approved in December 2022, to around $3.2 billion.

The IMF also sanctioned a new $1.3 billion arrangement for Egypt under the Resilience and Sustainability Facility, aimed at promoting reforms related to climate change. Further details on the Resilience and Sustainability Facility program are expected to be released shortly, according to the IMF’s statement.

In conclusion, while Egypt has made strides in stabilizing its economy, it continues to face significant challenges including high debt levels, mixed structural reform progress, and inflationary pressures. The IMF’s financial support and recommendations are vital in steering Egypt towards a sustainable economic future. Careful management of fiscal policies and attention to external risks will be crucial in maintaining economic stability and growth.

Original Source: www.thenationalnews.com