CAIRO, Aug 27 (NNN-MENA) – The International Monetary Fund (IMF), yesterday, approved a disbursement of 820 million U.S. dollars to Egypt, as part of an 8 billion-dollar loan programme.
The IMF said, macroeconomic conditions in Egypt have improved, since the programme’s first and second reviews in March, noting that, inflationary pressures are gradually abating, foreign exchange shortages have been eliminated, and fiscal targets have been met.
However, the IMF warned that, the regional environment remains difficult and that domestic policy challenges require decisive action.
The challenging regional environment, including “the conflict in Gaza and Israel, and tensions in the Red Sea, as well as, domestic policy and structural challenges,” necessitate continued implementation of programme commitments, the IMF said in a report.
It recommended continued fiscal consolidation, enhanced revenue mobilisation, and accelerated structural reforms, to boost private sector growth.
This tranche is part of an extended eight billion U.S. dollar loan agreement, finalised between Egypt and the IMF in March, to help the country address the mounting impact of regional tensions on its macro-economy.
The loan arrangement, which began in Dec, 2022, is scheduled to conclude in Sept, 2026, according to Egypt’s Ministry of Finance.
Over the past two years, the U.S. dollar shortage in Egypt has led to the devaluation of the local currency and the emergence of a parallel currency exchange market, plunging Egypt into one of its worst economic crises.
The crisis has been further exacerbated by the Gaza conflict that erupted last Oct, impacting Egypt’s tourism sector and halving its revenues from the Suez Canal.– NNN-MENA
