IMF delegation in Egypt for talks on $3 billion loan program
A team from the International Monetary Fund (IMF) is presently in Cairo to discuss Egypt’s $3 billion IMF loan and reform program.
This development comes amid ongoing talks about securing additional funding to alleviate the economic pressures on the country arising from the Gaza war, Reuters reported.
A spokesperson mentioned that under the leadership of IMF Egypt Mission Chief Vladkova Hollar, the team would “continue discussions on the first and second reviews of Egypt’s reform program supported by the IMF’s Extended Fund Facility. We will communicate at the end of the visit.”
The spokesperson added that Jihad Azour, the IMF’s Middle East and Central Asia director, was also in Cairo earlier this week during an annual retreat with the division’s regional offices. During the retreat, Azour held discussions with Egyptian authorities and regional stakeholders.
Egypt has faced significant challenges due to Israel’s conflict with Hamas in neighbouring Gaza.
The repercussions include adverse effects on tourism bookings, disruptions in natural gas imports, and incidents targeting shipping in the Red Sea.
Currently, Egypt holds the highest debt to the IMF in Africa, with an outstanding amount of around $12 billion as of December 6, 2023.
IMF chief spokesperson Julie Kozack told reporters last week that additional financing was “critical” to the success of the Egypt program, but amounts and potential disbursements were under discussion. Also under discussion was the need for tighter fiscal and monetary policy.
