Egypt clinches $3-billion funding deal with IMF

By Ahmed Hatem
ANKARA (AA) – Egypt announced Thursday a 3-billion-dollar agreement with the International Monetary Fund (IMF) to shore up its economy.

“The IMF’s $3 billion loan is part of a $9 billion finance scheme that is expected to include $1 billion from the sustainability fund and $5 billion by the country’s development partners,” Finance Minister Mohamed Maait told a press conference in Cairo.

IMF Mission Chief for Egypt Ivanna Vladkova Hollar said the program aims to provide Egypt with balance of payments and budget support.

"Egypt’s international and regional partners will play a critical role in facilitating the implementation of the authorities’ policies and reforms, revealing that additional financing of about $5 billion is projected to be provided through multilateral and regional partners during current FY2022/2023, which ends in June 2023, which will help strengthen Egypt’s external position," read a statement released by the IMF.

The move came shortly after Egypt’s Central Bank hiked key interest rates in an unscheduled meeting by two percent (200 bps).

On Thursday, the Egyptian currency slid by more than 14% to reach 22.4 pounds against dollar.

Writing by Ahmed Asmar