Today: 13 July 2025
17 December 2022
2 mins read

IMF okays $3 billion loan to Egypt

Some Egyptian economists considered the approved IMF loan “a certificate of confidence” in the Egyptian economy…reports Asian Lite News

The International Monetary Fund (IMF) has said that its executive board had approved a loan to Egypt of about $3 billion over 46 months.

The decision enables an immediate disbursement of about $347 million to Egypt, “which will help meet the balance of payments need and provide support to the budget”, the IMF said in a statement, adding the loan package is expected to encourage Egypt’s international and regional partners to provide an extra 14 billion dollars to finance the most populous Arab country, Xinhua news agency reported.

According to the IMF, the financial support was granted in exchange for an economic reform program from the Egyptian government, which it hopes can pave the way for “sustainable, inclusive and private-sector-led growth”.

The US-based finance institution has also asked Egypt to make “a permanent shift to a flexible exchange rate regime,” ensure the “downward trajectory in public-debt-to-GDP”, reduce “the state footprint”, “facilitate private-sector-led growth” and more.

The IMF’s loan comes at a time when Egypt is suffering high inflation and foreign currency shortage after the Russia-Ukraine crisis prompted capital flight from emerging markets.

Egypt’s annual urban consumer inflation rate rose from 16.2 per cent in October to 18.7 per cent in November, marking the highest increase since December 2017 when it reached 21.9 per cent, according to official data.

Some Egyptian economists considered the approved IMF loan “a certificate of confidence” in the Egyptian economy.

“The international business community has been waiting for this certificate of confidence, as the IMF will be evaluating and reviewing Egypt’s economic and structural reform program biannually for the coming four years,” Fakhri al-Fiqi, an Egyptian economic professor and head of the parliamentary planning and budget committee, told the news agency.

Al-Fiqi explained that the IMF support package, along with the anticipated additional $14 billion from other partners, will make up for the hot money withdrawal and the foreign currency shortage and eventually contain inflation.

“The inflation is expected to gradually slow down over the coming four years to 4-5 per cent as it used to be, in which case it will be affordable to average Egyptian citizens,” the expert told the news agency.

Egypt carried out a three-year economic reform program that started in late 2016 with the support of a $12-billion loan from the IMF.

ALSO READ-Pakistan-IMF talks kick off in Doha

Previous Story

Microsoft bans cryptocurrency mining from its online services

Next Story

COP28 outlines path ahead for UAE-hosted Climate Summit

Latest from -Top News

UAE rolls out red carpet for Indian start-ups

MoU signed with IIT Bombay’s SINE as CEPA Start-up Series aims to accelerate market access for Indian ventures In a bid to bolster cross-border entrepreneurship and innovation, the UAE-India CEPA Council (UICC),

Masdar powers ahead in UK

€15 billion clean energy alliance powers ahead with East Anglia THREE investment and Baltic Eagle energisation….reports Asian Lite News Masdar, the UAE-based global clean energy powerhouse, and Iberdrola, one of the world’s

Indian Doctor Gets Top Sharjah Award

The award was presented by His Highness Sheikh Abdullah bin Salem bin Sultan Al Qasimi, Deputy Ruler of Sharjah. In a moment of immense pride for the Indian diaspora, renowned paediatrician-turned-entrepreneur Dr.

Peace talks in the desert

President H.H. Sheikh Mohamed reiterated the UAE’s unwavering support for initiatives aimed at fostering sustainable peace, dialogue, and development in the South Caucasus. He also applauded the willingness of the Armenian and

World’s energy thirst to grow: OPEC

UAE sticks to 5 million bpd oil output goal as OPEC launches new World Oil Outlook at Vienna seminar…reports Asian Lite News Haitham Al Ghais, Secretary-General of the Organisation of the Petroleum
Go toTop

Don't Miss

GERD: Egypt vows to defend its citizens with ‘all means’

The UN remains ready to support Egypt, Ethiopia and Sudan,

Biden lauds Egypt’s role in delivery of Gaza humanitarian aid  

President Biden briefed President Sisi on US efforts to ensure