{"id":613330,"date":"2024-01-14T00:00:00","date_gmt":"2024-01-14T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/01\/14\/another-sign-were-edging-towards-a-larger-imf-package\/"},"modified":"2024-01-14T00:00:00","modified_gmt":"2024-01-14T00:00:00","slug":"another-sign-were-edging-towards-a-larger-imf-package","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/01\/14\/another-sign-were-edging-towards-a-larger-imf-package\/","title":{"rendered":"Another sign were edging towards a larger IMF package"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>Unlocking a larger IMF package is \u201ccritical\u201d <\/strong>for the success of Egypt\u2019s loan program, the international lender\u2019s director of communications, Julie Kozack, said during a press briefing (<a target=\"_blank\" href=\"https:\/\/www.imf.org\/en\/News\/Articles\/2024\/01\/11\/tr011124-transcript-of-imf-press-briefing\" style=\"\" rel=\"noopener\">watch, runtime: 49:05<\/a>). She did not provide any details on the size of the larger package needed or a timeline on when we can expect it to be announced. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>We knew a larger IMF program was in the cards <\/strong>after IMF Managing Director KristalinaGeorgieva <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/2e3b6af2-e413-454a-ad16-4b0f5e9184cb\" style=\"\" rel=\"noopener\">said in November<\/a> that the Fund was \u201cseriously considering\u201d increasing Egypt\u2019s USD 3 bn loan program, as pressures from the conflict in Gaza pose further pressures on the country. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>It\u2019s all still being negotiated: <\/strong>The Fund is currently in discussions with Egyptian authoritiesregarding the policy requirements necessary for the Fund to sign off on the first two reviews of the loan program, namely <strong>tightening fiscal and monetary policy and moving towards a flexible exchange rate<\/strong>, Kozack said. \u201cWe expect those discussions to continue in the coming weeks to operationalize the key policy priorities \u2026 which would support the authorities\u2019 commitment to reduce inflation and to gradually move to an inflation-targeting regime,\u201d she added.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The IMF acknowledges we\u2019re in a tight spot: <\/strong>\u201cEgypt already faces a complicated and challenging macroeconomic situation. And that situation has been made more complicated by the conflicts between Israel and Gaza,\u201d Kozack said. She pointed to the impact of the war on \u201careas that support the current account\u201d like tourism and Red Sea disruptions.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>ICYMI: <\/strong>Georgieva <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/66514948-fc7f-4c14-a7bf-edbce84eb382\" style=\"\" rel=\"noopener\">met last week<\/a> with CBE Governor Hassan Abdalla and Finance Minister Mohamed Maait, Kozack said, without giving away the details of the meetings, but signaled that there was \u201cimportant progress in the discussions.\u201d <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>How much are we talking? <\/strong>The government is reportedly looking for another USD 2 bn from the IMF, which would increase the loan program to USD 5 bn, <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/cd3e36a4-25a3-4129-9e86-f88ce45ca113\" style=\"\" rel=\"noopener\">unconfirmed media reports<\/a> said in October. The usually well-sourced nighttime talkshow host Lamees El Hadidi <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/5a19a6a8-e2b9-4824-b891-129abf0dc6c0\" style=\"\" rel=\"noopener\">says<\/a> we could even get up to 4x what the fund had originally pledged, after her sources told her that authorities are in talks with the Fund over potentially raising the value of the loan to USD 10-12 bn (<a target=\"_blank\" href=\"https:\/\/www.youtube.com\/watch?v=a-9WmKg7wZk\" style=\"\" rel=\"noopener\">watch, runtime: 5:13<\/a>).<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>MEANWHILE- <\/strong><strong>JP Morgan Chase is taking Egypt out of its Government Bond <\/strong><strong>Index-Emerging Markets <\/strong>\u2014 indices that track local currency bonds issued by EM governments \u2014 at the end of this month, the bank said in a report seen by <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-01-11\/jpmorgan-cuts-egypt-from-key-bond-indexes-as-fx-shortages-mount\" style=\"\" rel=\"noopener\">Bloomberg<\/a>. It will also remove the country from the Emerging Local Markets Index Plus (ELMI+) \u2014 a group of indices that tracks total returns for local currency denominated money market instruments in EMs \u2014 on 29 March due to the persistent FX shortage in the country.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>IMF head Kristalian Georgieva met with CBE boss Hassan Abdalla last week<\/p>\n","protected":false},"author":1,"featured_media":613331,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7206],"tags":[271,104,115,72,1318,272],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-613330","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-central-bank-of-egypt","tag-economy","tag-emerging-markets","tag-enterpriseam","tag-fiscal-policy","tag-imf","wpautop","entry"],"acf":{"mongo_id":"ba6da86a-4d90-4e47-98da-3beef39b5c1f","order":"0","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/1\/747.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Success of Egypt\u2019s IMF loan program is contingent on additional financing, says IMF","related_issue":[613325],"teaser":"IMF head Kristalian Georgieva met with CBE boss Hassan Abdalla last week","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/1\/.bb6dc5b7-e201-4bce-8507-1a8c6d1871aa.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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The remaining talking heads were hyperfixed on the presidential elections. War on our border = more money from the IMF? Egypt is well-positioned to\u2026","rel":"","context":"In &quot;LAST NIGHT\u2019S TALK SHOWS&quot;","block_context":{"text":"LAST NIGHT\u2019S TALK SHOWS","link":"https:\/\/enterpriseam.com\/egypt\/category\/last-nights-talk-shows\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/12\/155.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":615819,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/02\/25\/egypt-imf-make-excellent-progress-on-first-second-loan-reviews\/","url_meta":{"origin":613330,"position":1},"title":"Egypt, IMF make \u201cexcellent progress\u201d on first, second loan reviews","author":"enterpriseam admin","date":"25 February 2024","format":false,"excerpt":"The IMF and Egyptian authorities have agreed on the main elements of the program","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/12\/572.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":610311,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/11\/19\/imf-could-bump-up-our-usd-3-bn-loan-on-back-of-gaza-war\/","url_meta":{"origin":613330,"position":2},"title":"IMF could bump up our USD 3 bn loan on back of Gaza war","author":"enterpriseam admin","date":"19 November 2023","format":false,"excerpt":"Unconfirmed reports last month claimed that Egypt was looking to borrow another USD 2 bn from the Fund","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/11\/949.JPG?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":613763,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/01\/21\/imf-officials-are-in-town-for-loan-discussions-plus-moodys-downgrades-our-credit-outlook\/","url_meta":{"origin":613330,"position":3},"title":"IMF officials are in town for loan discussions. 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