Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), announced that the IMF is seriously considering increasing the $3 billion loan currently allocated to Egypt for its economic reform program.
This statement was made during a press conference at the Asia-Pacific Economic Cooperation summit held on Saturday.
Georgieva attributed the consideration to increase the loan to the economic hardships brought on by the ongoing war between Israel and Hamas.
She explained that the conflict is devastating Gaza’s population and economy, severely impacting the West Bank’s economy, and creating difficulties for neighboring countries like Egypt, Lebanon, and Jordan due to the loss of tourism and rising energy costs.
Egypt has been collaborating with the IMF since December on a 46-month economic reform program, initially funded with $3 billion to be disbursed in tranches. Egypt has already received the first tranche of approximately $350 million.
However, the disbursement of the second and third tranches, totaling around $700 million, has been delayed due to slow progress in implementing certain reform measures, particularly those related to exchange rate policies.
Western reports have revealed that the European Union is intensifying efforts to deepen its relationship with Egypt and help the country address the escalating fallout from the war in Gaza.
According to these reports, European Commission President Ursula von der Leyen is planning a visit to Cairo to advance efforts in supporting Egypt’s economic development and mitigating the impact of the ongoing crisis.
The EU aims to explore a partnership in this regard but is now looking to expedite the process due to Cairo’s strategic importance and concerns over increasing refugee flows, including from African countries like Sudan.
The report, citing informed sources who requested anonymity, states that EU member countries, including Germany and France, support this ongoing initiative
