Egypt is set to receive the initial installment of an enhanced loan package from the International Monetary Fund (IMF) next week, announced Prime Minister Mostafa Madbouly during a press briefing on Saturday.
While Madbouly didn’t specify the exact amount, the IMF disclosed on Friday that the expanded financial assistance program, totaling $8 billion, will kick off with an immediate disbursement of $820 million.
The arrangement builds upon a previous $3 billion, 46-month Extended Fund Facility inked in December 2022.
However, progress on the earlier agreement was halted after Egypt failed to fulfill commitments such as untethering its currency, expediting the sale of state assets, and implementing other economic reforms.
Following the setbacks, the IMF opted to broaden the scope of the agreement in response to Egypt’s economic challenges exacerbated by the Gaza crisis.
The conflict resulted in a downturn in tourism and disruptions in shipping, particularly through the Red Sea, leading to a significant decline in revenue from the Suez Canal.
Given that tourism and shipping constitute crucial pillars of Egypt’s foreign exchange earnings, the country has been keen on shoring up its economic resilience amidst these challenges.
