IMF Board to Consider Egypt’s Fourth Loan Review on Feb. 4

CAIRO(Capital Markets in Africa) – The International Monetary Fund’s executive board will discuss Egypt’s fourth loan review on Monday, opening the door for the anticipated payout of the fifth installment of the fund’s $12 billion loan to the Arab nation.

The loan was approved in November 2016 after Egypt devalued its currency and launched a sweeping program to overhaul the economy. It was a key part of the government’s efforts to restore investor confidence that had all but evaporated after the 2011 uprising that ousted President Hosni Mubarak.

The loan installment had been expected in December, but was delayed amid wrangling with the IMF over the timing of planned changes to the government’s fuel-pricing mechanism. Central Bank Governor Tarek Amer said on Jan. 22 the issues had been settled and that the funds were expected by early February.

IMF Managing Director Christine Lagarde said on Jan. 25 that she would recommend the board approve the loan review, noting that “Egypt has made substantial progress, as evident in the success achieved in macroeconomic stabilization.”

The draft fiscal budget for 2019-20 sees the deficit falling to 7 percent and the debt-to-GDP ratio retreating to 79.4 percent from around 98 percent in the current fiscal year.

Source: Bloomberg Business News