{"id":618054,"date":"2024-04-02T00:00:00","date_gmt":"2024-04-02T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/04\/02\/we-could-receive-the-second-tranche-of-our-imf-loan-in-june\/"},"modified":"2024-04-02T00:00:00","modified_gmt":"2024-04-02T00:00:00","slug":"we-could-receive-the-second-tranche-of-our-imf-loan-in-june","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/04\/02\/we-could-receive-the-second-tranche-of-our-imf-loan-in-june\/","title":{"rendered":"We could receive the second tranche of our IMF loan in June"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>The second tranche of our IMF package could arrive this summer: <\/strong>We are in line to receive the second USD 820 mn tranche under the IMF\u2019s USD 8 bn loan program this summer after the fund completes its third review of the facility, IMF mission chief for Egypt Ivanna Hollar <a target=\"_blank\" href=\"https:\/\/www.imf.org\/en\/News\/Articles\/2024\/04\/01\/tr040124-transcript-of-press-conference-with-imf-mission-chief-of-egypt\" style=\"\" rel=\"noopener\">said<\/a> during a press conference yesterday. The third review is expected to be complete by the end of June. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Remember: <\/strong>The IMF\u2019s Executive Board <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/c0f153a1-4a27-4cda-9c1d-6dfc4681517b\/%253cmark%253eimf-%253c%2Fmark%253egreenlights-the-dispersal-of-usd-820-mn-after-approving-expanded-usd-8-bn-loan-program.-plus:-eu-fastracks-eur-1-bn-of-aid-package\" style=\"\" rel=\"noopener\">signed off on the USD 5 bn extension<\/a> for our extended fund facility and completed its long-delayed first and second reviews of the facility over the weekend. Of the total USD 8 bn program, the Fund also approved a decision to let the state \u201cimmediately draw\u201d around USD 820 mn this week. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>What about the rest of the funds? <\/strong>Reviews, each unlocking a USD 1.3 bn tranche, will take place every six months, until the program comes to an end in fall of 2026, Hollar added.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>To ensure loan disbursement: <\/strong>\u201cAt each individual review, the expectation is that the conditions that we're seeing now in the market are going to continue to hold, in the sense that we do not see a return to a system of FX rationing and lack of FX availability,\u201d Hollar said.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>FDI secured, now what? <\/strong>The IMF will keep its eyes peeled as to how authorities manage recent inflows, Hollar explained, adding that policies to ensure maximum gains from these inflows will be discussed during upcoming reviews. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>More cuts to energy subsidies are needed: <\/strong>\u201cThe commitment under the program is to continue reducing [energy subsidies] using the fuel price adjustment mechanism that has been proposed by the authorities in favor of using some of those resources to better target the resources that are going to households which need additional income support,\u201d Hollar said. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Egypt had originally planned to eliminate energy subsidies by the end of the fiscal year 2018-2019<\/strong>, but has been prolonging the phase-out process ever since. The government hiked electricity prices for households and businesses at the <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/6468a17b-84c3-4eff-be44-5ad1a59c8a21\" style=\"\" rel=\"noopener\">start of 2024<\/a> by 16-26%.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The Madbouly government raised fuel prices by 8.0-21.2% <\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/be2302e1-e1a7-4413-95b2-887642444241\/egypt-hikes-car-fuel-prices-by-by-8-21%2525\" style=\"\" rel=\"noopener\">last month<\/a><\/strong><strong>. <\/strong>The increases came in line with promises made by Egypt to the IMF over a year ago as part of the financial support agreement, when the government said it would allow fuel prices to rise to bring domestic prices in line with international energy markets.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>More private sector involvement is crucial: <\/strong>Hollar highlighted the significance of having reforms that \u201cstrengthen the capacity of the private sector to operate in this environment and have the private sector be the engine of growth.\u201d<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>ICYMI- <\/strong>The IMF and Egyptian authorities <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/033d5dd6-d417-4ad7-8154-b113a19b96a7\" style=\"\" rel=\"noopener\">agreed on the expansion of the program<\/a> last month after floating the EGP and enacting a jumbo 600-bps interest rate hike. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>More to come: <\/strong>The loan review scheduled for June will also discuss the USD 1.2 bn long-term, low-cost climate financing Egypt plans on applying for under the IMF's Resilience and Sustainability Facility, Hollar said. \u201cTo qualify, countries need to have in place a strong set of policies that are intended to address the bases of climate change,\" she added.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>MEANWHILE- No more rate hikes from the CBE?<\/strong> \u201cI believe we\u2019ve reached the peak of interest rates,\u201d Cairo Capital Securities Chief Economist Hany Genena told Al Arabiya Business <a target=\"_blank\" href=\"https:\/\/twitter.com\/AlArabiyaBN_EG\/status\/1774413638595404227?s=20\" style=\"\" rel=\"noopener\">(watch, runtime: 5:40)<\/a>. \u201cNo further monetary tightening is needed,\u201d he explained, pointing to the CBE using macroprudential tools, alongside the 600-bps rate hike. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The IMF disagrees: <\/strong>\u201cThe Central Bank should stand ready actually to tighten if we see inflation pressures to continue,\u201d Hollar said. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>** More to come: <\/strong>The IMF will publish its staff report on Egypt in the coming days. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Egypt is in line to receive the second USD 820 mn tranche under the IMF\u2019s USD 8 bn loan program this summer<\/p>\n","protected":false},"author":1,"featured_media":618055,"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":[838,104,72,272],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-618054","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-devaluation","tag-economy","tag-enterpriseam","tag-imf","wpautop","entry"],"acf":{"mongo_id":"72695007-0bdb-4085-b04c-093acab38347","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/12\/572.jpg","photo_position":"above","homepage_title":"","full_issue_title":"The second tranche of Egypt\u2019s loan programme from the IMF could arrive in June","related_issue":[618047],"teaser":"Egypt is in line to receive the second USD 820 mn tranche under the IMF\u2019s USD 8 bn loan program this summer","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/4\/.a7706fd8-d6f8-4fc1-a120-5c55b77bda53.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>We could receive the second tranche of our IMF loan in June - 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\/04\/02\/we-could-receive-the-second-tranche-of-our-imf-loan-in-june\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta 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tranche of its USD 5.2 bn IMF standby loan after it reached a staff-level agreement with the fund following a review of the 12-month program, the IMF said in a statement. Some USD 1.6 bn will be paid out should the fund\u2019s\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/11\/222.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":619153,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/04\/28\/egypt-could-receive-another-usd-820-mn-tranche-in-june\/","url_meta":{"origin":618054,"position":1},"title":"Egypt could receive another USD 820 mn tranche in June","author":"enterpriseam admin","date":"28 April 2024","format":false,"excerpt":"The country has met 7 out of 15 structural reform targets set by 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\/2024\/4\/1881.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":562487,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/05\/26\/imf-gives-initial-approval-for-final-tranche-of-usd-5-2-bn-standby-loan\/","url_meta":{"origin":618054,"position":2},"title":"IMF gives initial approval for final tranche of USD 5.2 bn standby loan","author":"enterpriseam admin","date":"26 May 2021","format":false,"excerpt":"Egypt expects to unlock the third and final USD 1.6 bn tranche of its USD 5.2 bn IMF standby loan after reaching a staff-level agreement with the fund, the IMF said in a statement. An IMF delegation was (virtually) in townover the past two weeks for the second review of\u2026","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\/2021\/5\/229.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":620709,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/05\/26\/whats-on-the-imfs-agenda-as-it-conducts-the-third-review-of-our-loan-program\/","url_meta":{"origin":618054,"position":3},"title":"What\u2019s on the IMF\u2019s agenda as it conducts the third review of our loan program?","author":"enterpriseam admin","date":"26 May 2024","format":false,"excerpt":"The IMF sees improved economic indicators and strengthened cash flows","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\/2024\/5\/1982.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":623639,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/06\/09\/imf-reaches-staff-level-agreement-on-third-loan-review\/","url_meta":{"origin":618054,"position":4},"title":"IMF reaches staff-level agreement on third loan review","author":"enterpriseam admin","date":"9 June 2024","format":false,"excerpt":"The Fund warned that the impact of the war on Gaza and trade disruptions in the Red Sea could pose a threat to the country\u2019s economic outlook","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\/2024\/6\/671.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":599518,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/01\/02\/egypt-to-receive-the-fifth-tranche-of-imf-facility-this-month\/","url_meta":{"origin":618054,"position":5},"title":"Egypt to receive the fifth tranche of IMF facility this month","author":"enterpriseam admin","date":"2 January 2019","format":false,"excerpt":"Egypt to receive the fifth tranche of IMF facility this month: The country will receive the next USD 2 bn tranche of the IMF\u2019s extended fund facility this month, Ittihadiya said in a statement quoting Central Bank of Egypt Governor Tarek Amer\u2019s note to President Abdel Fattah El Sisi. The\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/618054","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=618054"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/618054\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/618047"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/618055"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=618054"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=618054"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=618054"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=618054"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=618054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}