{"id":611592,"date":"2023-12-10T00:00:00","date_gmt":"2023-12-10T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/12\/10\/were-in-talks-with-the-imf-for-a-bigger-package\/"},"modified":"2023-12-10T00:00:00","modified_gmt":"2023-12-10T00:00:00","slug":"were-in-talks-with-the-imf-for-a-bigger-package","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/12\/10\/were-in-talks-with-the-imf-for-a-bigger-package\/","title":{"rendered":"We\u2019re in talks with the IMF for a bigger package"},"content":{"rendered":"

A top-up from the IMF is looking more and more likely: <\/strong>The IMF has given its clearest indication yet that it could agree to increasing the size of Egypt\u2019s USD 3 bn loan program<\/a>, with a spokesperson last week confirming that the subject is being discussed and that additional funds will be \u201ccritical\u201d in light of the war in Gaza. <\/p>\n

What they said: <\/strong>\u201cIt is clear that additional financing will be critical to ensure the success in the implementation of the policy package for Egypt,\u201d IMF Communications Director Julie Kozack told reporters<\/a> at a press conference on Thursday, noting the potential impact of the conflict on Egypt\u2019s economy, particularly its tourism sector.<\/p>\n

Amount TBD: <\/strong>The \u201cexact size of the financing is part of the ongoing discussions\u201d between the IMF and Egyptian authorities, Kozacksaid. Unconfirmed media reports in October had suggested that local authorities were negotiating for an additional USD 2 bn<\/a>.<\/p>\n

But the usually well-sourced nighttime talkshow host Lamees El Hadidi says we could get up to 4x<\/strong> what the fund had originally pledged. El Hadidi said unnamed sources told her authorities are in talks with the Fund over potentially raising the value of the loan to USD 10-12 bn (watch, runtime: 5:13<\/a>). (We have more in Lat Night\u2019s Talk Shows, below). <\/p>\n

The head of the IMF recently hinted at a top-up: <\/strong>IMF Managing Director Kristalina Georgieva said last month that the Fund is \u201cseriously considering\u201d increasing the program<\/a> in light of the war.<\/p>\n

Also from the presser:<\/strong> The two sides have made \u201cimportant progress\u201d in the discussions over a flexible exchange rate, tighter fiscal and monetary policies, and lower inflation, Kozack said.<\/p>\n