{"id":615037,"date":"2024-02-12T00:00:00","date_gmt":"2024-02-12T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/02\/12\/egypt-inching-closer-to-new-large-imf-loan-says-fund-chief\/"},"modified":"2024-02-12T00:00:00","modified_gmt":"2024-02-12T00:00:00","slug":"egypt-inching-closer-to-new-large-imf-loan-says-fund-chief","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/02\/12\/egypt-inching-closer-to-new-large-imf-loan-says-fund-chief\/","title":{"rendered":"Egypt inching closer to new \u201clarge\u201d IMF loan, says Fund chief"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Reviews of Egypt\u2019s previous IMF loan program near completion:<\/strong> The IMF\u2019s long-stalled first and second reviews of Egypt\u2019s USD 3 bn loan program are in their final stages and are expected to be completed \u201cin a few short weeks,\u201d IMF Managing Director Kristalina Georgieva told <a target=\"_blank\" href=\"http:\/\/tinyurl.com\/yc58p6yf\" style=\"\" rel=\"noopener\">Asharq Business<\/a> yesterday on the sidelines of the World Governments Summit in Dubai. Egyptian officials and the IMF have already agreed on all \u201cthe key issues for the review,\u201d Georgieva told <a target=\"_blank\" href=\"http:\/\/tinyurl.com\/3bs78b5f\" style=\"\" rel=\"noopener\">Al Arabiya Business<\/a> in a separate interview at the summit.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>More encouraging words on the size of the package:<\/strong> Georgieva said that the Fund is preparing a \u201clarge amount\u201d of additional funding to \u201cgive a dose of confidence to the Egyptian economy by enhancing the size of the support program.\u201d<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>No word on the exact size of the package<\/strong>, but Enterprise sources with knowledge have put it in the <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/08f51e36-cd3a-411d-a974-659fd3601066\" style=\"\" rel=\"noopener\">USD 6-9 bn ballpark<\/a>. Meanwhile, <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/21f48d1a-051c-4c8a-be41-0c7a7a5e819b\" style=\"\" rel=\"noopener\">one government source believes<\/a> the government is closing in on a combined USD 12 bn in financing, with the IMF doubling the value of the package it had offered to USD 6 bn and other, unnamed \u201cdevelopment partners\u201d contributing a further USD 6 bn \u2014 a figure echoe by Gooldman Sachs. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Multiple exchange rates are \u201cdisastrous\u201d for Egypt<\/strong>, Georgieva told Al Arabiya Business. She emphasized the need for Egypt to move in a direction that allows the exchange rate to be determined by market forces and eliminate the parallel market. Georgieva <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/34d82cce-f4dd-436a-b2d7-ef783c0903de\" style=\"\" rel=\"noopener\">has been very vocal<\/a> about the need for Egypt to devalue its currency, explaining that otherwise the country risks bleeding reserves. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>No full float on the cards:<\/strong> Georgieva confirmed that the Fund\u2019s talks with Egypt have been about a more flexible exchange rate, but not a float of the EGP. The Fund is currently waiting on Egyptian authorities to allow a more flexible exchange rate and fulfill other conditions before it grants us more funding, she added, without specifying what those other promises are. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Reducing inflation is still the main target: <\/strong>\u201cPolicy makers in Egypt must focus on inflation,\u201d Georgieva told Asharq Business, <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/ba6da86a-4d90-4e47-98da-3beef39b5c1f\" style=\"\" rel=\"noopener\">reiterating<\/a> earlier comments from the international lender\u2019s director of communications, Julie Kozack, who said last month that the IMF is supporting the government \u201cto reduce inflation and to gradually move to an inflation-targeting regime.\u201d<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>IMF calms tone on state asset sales: <\/strong>\u201cThe situation in Gaza has put pressure on Egypt, including its state assets sales program, and we want Egypt to sell at the appropriate time,\u201d Georgieva said. She called for the government to not \u201crush to sell shares in government companies under the current circumstances,\u201d in contrast to the Fund\u2019s position in April last year, when it <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/7c21c86c-40a9-40f1-8e97-0dc7f259a895\" style=\"\" rel=\"noopener\">postponed<\/a> the first review of the country\u2019s USD 3 bn assistance package partly due to the lack of progress on privatizing state-owned companies.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Georgieva said that the Fund\u2019s talks with Egypt have been about a more flexible exchange rate, but not a float of the EGP.<\/p>\n","protected":false},"author":1,"featured_media":615038,"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":[838,104,72,2234,272,1368],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-615037","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-devaluation","tag-economy","tag-enterpriseam","tag-foreign-exchange","tag-imf","tag-kristalina-georgieva","wpautop","entry"],"acf":{"mongo_id":"70fc592b-2ad2-47f2-a847-6db6539e47c3","order":"0","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/2\/938.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Reviews of previous IMF loan program for Egypt near completion as Fund prepares \u201clarge amount\u201d of additional funding","related_issue":[615032],"teaser":"Georgieva said that the Fund\u2019s talks with Egypt have been about a more flexible exchange rate, but not a float of the EGP.","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/2\/.f4b5a9ef-cc35-46ca-9113-b7fe1402479a.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Egypt inching closer to new \u201clarge\u201d IMF loan, says Fund chief - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2024\/02\/12\/egypt-inching-closer-to-new-large-imf-loan-says-fund-chief\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" 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