Speaking to Reuters, the IMF head stated that Egypt and Tunisia were in a “very advanced stage” of staff-level agreements
Talks for a loan to secure financial assistance following global economic challenges with the International Monetary Fund (IMF) are nearly over.
Egypt and the IMF could finalize things “possibly within days or weeks, hard to predict but it will be very soon” says IMF Managing Director Kristalina Georgieva.
Speaking to Reuters, the IMF head stated that Egypt and Tunisia were in a “very advanced stage” of staff-level agreements.
Georgieva did not reveal the possible amount, but stated that they are “looking at sizable programs.” The exact amount will be determined through negotiations and finalized with the authorities, she noted.
BNP Paribas has estimated the loan to be in the $3-5 billion range after lowering it in late August from its $10 billion forecast in July, while Goldman Sachs has it valued at around $15 billion.
However, officials, including Finance Minister Mohamed Maait, have noted that Goldman Sachs’ assessment would be too high. Maait explained in a Bloomberg interview in early August that the figure was “completely inaccurate.”
Egypt reached out to the International Monetary Fund (IMF) back in March to request financial support in light of the Russian/Ukrainian conflict’s impact on the economy and rising inflation rates. In late August, Prime Minister Mostafa Madbouly stated that they were the “final stages” of discussions for a fresh batch of funding to support the economy.
