Egypt has finalized a deal with the International Monetary Fund (IMF) to boost its existing loan arrangement from $3 billion to $8 billion.
This expansion was disclosed during a press conference on Tuesday, featuring attendance from Prime Minister Mostafa Madbouly, Central Bank of Egypt (CBE) Governor Hassan Abdullah, and IMF mission chief Ivanna Vladkova Hollar.
Prime Minister Madbouly highlighted that this deal is part of a broader scheme of structural reforms aimed at revitalizing the Egyptian economy, designed and implemented by the government and the CBE.
He emphasized the program’s homegrown nature and its focus on key objectives such as increasing foreign currency reserves, reducing both domestic and foreign debt levels, attracting direct foreign investments, boosting economic growth, curbing inflation, generating employment, and enhancing social safety nets.
This agreement occurs amidst Egypt’s engagement in a $3 billion Extended Fund Facility (EFF) loan program with the IMF.
The deal’s revelation followed closely on the heels of the CBE’s decisions to liberalize the Egyptian pound’s exchange rate and implement a significant six percent interest rate hike, as part of its strategy to address economic challenges.
