Egypt's agreement with IMF raises to $8B up from $3B

CAIRO – 6 March 2024: The International Monetary Fund (IMF) has agreed to increase its loan to the country from $3 billion to a substantial $8 billion. The announcement was made by Prime Minister Mostafa Madbouly during a press conference held on Wednesday.

 

Egypt will also receive soft loans from the World Bank and the European Union, according to the Prime Minister.

 

Egypt's program with the IMF has several key objectives. Firstly, it aims to boost foreign currency reserves and curb inflation. Additionally, the program seeks to address both local and foreign debt, attract significant foreign direct investment, achieve a high economic growth rate, generate job opportunities for the youth, and enhance social protection programs.

 

Ivanna Vladkova Hollar, the IMF's mission chief, commended Egypt for implementing effective measures to improve its economy. Hollar specifically lauded the country's endeavors to attract foreign investments and its commitment to enhancing the living standards of its citizens through comprehensive social protection programs.

 

The announcement came shortly after the Central Bank of Egypt's decision to float the Egyptian pound (EGP) and raise interest rates by 600 basis points. The overnight deposit rate, overnight lending rate, and the rate of the main operation have been increased to 27.25 percent, 28.25 percent, and 27.75 percent, respectively. Furthermore, the discount rate has been raised by 600 basis points to 27.75 percent.