he report further predicts that this financing gap will reach around $4.4 billion in 2024, $2.3 billion in the following year, and $1 billion in 2026, before being fully repaid in 2027
Goldman Sachs projected that Egypt's financing requirements over the next four years will amount to $25 billion. This estimate is based on a basic scenario that assumes the conclusion of a new agreement with the International Monetary Fund (IMF) in the coming weeks, as well as the successful implementation of this agreement by local authorities.
According to Farouk Soussa, a MENA economist at Goldman Sachs, these financing needs include a cumulative external financing gap of approximately $8 billion over the next four years. The report further predicts that this financing gap will reach around $4.4 billion in 2024, $2.3 billion in the following year, and $1 billion in 2026, before being fully repaid in 2027.
Furthermore, Goldman Sachs anticipates that Egypt is on the verge of securing a $12 billion financing deal with the IMF, as reported by Asharq Bloomberg. This funding package is expected to consist of approximately $7 billion from the IMF and $5 billion from external partners.
The report highlights Egypt's potential to secure the remaining $13 billion through various means. These include generating revenue from state asset sales, restructuring future dues in foreign currency, and encouraging the return of overseas Egyptians' remittances to previous levels.
The IMF mission concluded its visit to Cairo last Thursday, announcing progress in discussions with Egyptian authorities. The mission will continue virtual meetings to determine the necessary additional support to fill the growing financing gap in the country, Bloomberg also reported.
In a statement released by the mission, the IMF team and Egyptian authorities achieved "excellent progress in discussions on the comprehensive policy package required to reach an agreement at the expert level for the first and second combined reviews of the Economic Reform Program in Egypt, supported by the Fund.
