Egypt may seek up to $3bn in emergency funding from IMF
Egypt is reportedly weighing securing emergency financing from the International Monetary Fund, driven by a strain on its foreign investment inflows due to the Iran war.
Cairo is seeking a potential loan of between $1.5 billion and $3 billion from the IMF, unidentified officials from the cabinet and finance ministry told Egypt-based Al Manassa news website.
Foreign investors have exited the local market amid regional tensions and higher energy costs stemming from Iran’s near-closure of the Strait of Hormuz, weighing on the state exchequer. The government has already raised fuel prices between 14 and 17 percent.
In February the IMF completed three reviews, allowing Egypt to draw about $2.3 billion.
The seventh review will be conducted in mid-June for a $1.7 billion disbursement, while the final review is scheduled for mid-November, the news website reported.
The fund wants the government to accelerate its privatisation programme before the end of May, ahead of the seventh review, one official said.
Further reading:
- Egypt suffers $8bn outflow due to conflict, Moody’s says
- Passenger volume up at Egypt’s airports despite Iran war
- Egypt raises train and metro ticket prices on higher oil costs
The IMF expanded its initial $3 billion loan facility, approved in December 2022, to $8 billion in March 2024 to help Cairo address rising inflation and foreign-currency shortages.
Last week Kristalina Georgieva, managing director of the IMF, said the war in the Middle East will lead to higher inflation and slower global growth.
The fund is expected to release its World Economic Outlook on April 14, but had flagged a possible downgrade in its March 30 blog post.
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