Egypt awaits IMF decision on $1.2 billion loan disbursement

Julie Kozack, the spokesperson for the International Monetary Fund (IMF), stated that the Fund’s Executive Board will discuss the disbursement of the fourth tranche of Egypt’s loan, amounting to $1.2 billion, in the coming weeks after the review is approved.

Kozack mentioned during a press conference on Thursday that the Fund is currently finalizing some items related to the fourth review to approve the disbursement, RT Arabic reported.

The Fund’s mission conducted its fourth review with the Egyptian government last December and announced that it had reached a staff-level agreement with the government under the $8 billion loan to support Egyptian economic reforms.

The Fund team and the Egyptian authorities agreed to readjust the fiscal consolidation path in light of local economic challenges and external pressures.

Regarding regional developments and their impact on the Egyptian economy, Kozack said that there is currently no connection between the situation in the Gaza Strip, adjacent to Egypt, and its economic program.

Kozack explained that the adjustment in the program aims to provide fiscal space to support essential social programs that serve the most vulnerable groups and the middle class while ensuring debt sustainability.

On the reform front, she pointed out that the priorities include reducing inflation, maintaining exchange rate flexibility, and liberalizing access to foreign currency.

She noted that the program focuses on strengthening domestic revenues, improving the business environment, accelerating divestment programs from investments, ensuring a level playing field between state-owned enterprises and the private sector, in addition to promoting governance and transparency.

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