Egypt is poised for a significant boost in foreign support, totaling $20 billion, following a new agreement with the International Monetary Fund (IMF), aimed at rejuvenating its crisis-stricken economy.
Finance Minister Mohamed Maait announced during a conference in Cairo on Thursday that this anticipated support includes an $8 billion Extended Fund Facility from the IMF, an additional $1.2 billion from the Resilience and Sustainability Facility, with the remainder expected to come from the World Bank, the EU, Japan, and the UK.
The announcement, made by Egypt and the IMF, outlines an agreement to double the value of the rescue program, marking a culmination of global efforts to stabilize the North African nation, which has been grappling with financial hardships exacerbated by conflicts and record inflation.
This significant financial maneuver came just hours after Egypt implemented a long-awaited currency flotation and enacted its largest-ever interest rate hike, signaling a committed step toward economic stabilization and recovery.
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.
