Egyptian Finance Minister Mohamed Maait said the loan agreed with the International Monetary Fund (IMF), amounting to about $3 billion, will be guaranteed over 4 years, and about $1 billion will be raised soon, following approval by the Executive Board. of fund managers in December.
The IMF and the Egyptian government reached a nationwide agreement in October on comprehensive economic reforms and policies that will be backed by a $3 billion, 46-month Extended Fund Facility (EPM) agreement.
The new EFF aims to maintain macroeconomic stability and debt sustainability, enhance Egypt’s resilience to external shocks, social safety net, and push for reforms that underpin staff-sector expansion and job creation.
The IMF agreement is expected to catalyze a significant multi-year financing program, comprising about $5 billion for the 2022/23 fiscal year, reflecting a broad external and regional financing for Egypt.
The Egyptian government also requested investments under the new Resilience and Sustainability Fund (RSF), which can provide up to an additional $1 billion for Egypt.
Maait said the Finance Ministry is still acting to fix the monetary outlook in Egypt with economic gains.
Egypt has obtained loans from the International Monetary Fund in the amount of approximately $20 billion since 2016, starting with the implementation of the economic and social reform agenda.
It has also obtained immediate financing to face the effects of the coronavirus pandemic, and has already begun to pay the first installments of the loan.