IMF Approves $1.77B for Egypt
The International Monetary Fund has approved the release of a new tranche to Egypt worth $1.77 billion as part of a total loan program amounting to $8 billion, agreed upon in March 2024 to support economic reforms. Egypt is expected to receive the tranche on August 3rd, with the funding doubled following the implementation of previous reforms. The report indicated that the Egyptian economy has been able to contain the repercussions of the war in the Middle East by improving the exchange rate, gradually increasing fuel prices, and reducing government spending. However, the economy faces challenges such as high public debt, financing needs, and slow implementation of structural reforms. It called for accelerating private sector programs to attract investments and boost competitiveness. The report also noted that a $10 increase in the price of a barrel of oil would lead to a 0.3% increase in the fiscal deficit relative to GDP.
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