Egypt secures financing packages worth $9B

CAIRO - 27 October 2022: Egypt’s Minister of Finance Mohamed Maait announced Thursday that Egypt has secured financing packages worth $9 billion.

 

Maait explained, during a conference, that those packages are divided between $3 billion from the International Monetary Fund (IMF), $1 billion from the IMF's Resilience and Sustainability Facility (RSF), and $5 billion from development partner countries and various financing institutions.

 

The International Monetary Fund (IMF) staff and Egypt announced reaching a staff-level agreement on comprehensive economic policies and reforms that will be supported by a $3 billion Extended Fund Facility (EFF) arrangement for a 46-month period.

 

The new financing aims to protect macroeconomic stability and debt sustainability, improve Egypt's resilience to external shocks, strengthen its social safety net, and intensify reforms that support private sector-led growth and job creation.

 

The IMF arrangement is expected to catalyze a large multi-year financing package, including about $5 billion in the 2022/2023 fiscal year, which reflects broad international and regional support for Egypt, according to the IMF’s statement.

 

The Egyptian authorities have also requested funding under the newly established Resilience and Sustainability Facility (RSF), which could provide up to an additional $1 billion to Egypt.

 

During October 4-27, 2022, an IMF team, led by Ivanna Vladkova Hollar, Mission Chief for Egypt, held meetings in Washington DC and Cairo to finalize discussions on IMF support for Egypt and the authorities’ comprehensive economic reform program. 

 

Commenting on the deal, Hollar said that the new EFF aims to provide Egypt with balance of payments and budget support while catalyzing additional financing from Egypt’s international and regional partners to maintain economic stability, address macroeconomic imbalances and spillovers from the war in Ukraine, protect livelihoods, and push forward deep structural and governance reforms to promote private sector-led growth and job creation. 

 

“The agreement is subject to approval by the IMF’s Executive Board, which is expected to discuss the authorities’ request in December,” she noted.