This comes within Egypt’s efforts to bolster its economy and ensure a substantial infusion of dollar liquidity.
Egypt requested a first tranche worth $5 billion from the International Monetary Fund (IMF), slated to be received in April, a government official told Asharq Bloomberg.
This comes within Egypt’s efforts to bolster its economy and ensure a substantial infusion of dollar liquidity.
Earlier in March, Egypt signed an agreement with the International Monetary Fund (IMF) to raise its current $3 billion deal to $8 billion. Prime Minister Mostafa Madbouly announced the signing of the agreement between Egypt and the IMF during a press conference on Wednesday.
This agreement came after the Central Bank of Egypt’s decision to float the Egyptian pound (EGP) and raise the interest rates by 600 basis points.
Madbouly also explained that Egypt will also receive $12 billion in soft loans from the World Bank and the European Union (EU).
The EU has announced a proposed package of financial support and investments worth €7.4 billion for 2024-2027, to strengthen relations with Egypt. The announcement was made by the Delegation of the European Union during the EU-Egypt Summit held in Cairo on Sunday.
The comprehensive package includes €600 million in grants, with €200 million specifically allocated for migration management. Additionally, €5 billion will be provided in soft loans, and €1.8 billion will be invested in various sectors.
Recently, Goldman Sachs projected that Egypt's external financing to witness a $26.5 billion surplus over the next four years, compared to previous anticipation of a deficit of $13 billion.
The bank also expected current deficit to expand to 2.5% gross domestic product (GDP) by the end of 2027.
This projection came within the framework of the UAE’s investment in Ras El Hekma, the flotation of Egyptian pound, and IMF financing deal.
