First Instalment of USD 8 Billion IMF Loan to Be Paid Next Week

Prime Minister Dr. Mustafa Madbouly has announced that the first tranche of funds from the International Monetary Fund (IMF) has been approved by the international institution, and will be paid in the coming week.

The IMF’s USD 8 billion loan programme, along with major injection of foreign currency from other sources, including the World Bank and the UAE - in return for huge swathes of land on Egypt’s north coast - have buoyed the Egyptian economy, allowing the floatation of the Egyptian pound on international foreign currency markets, instead of being subject to a fixed exchange rate set by the Egyptian government.

The last international organisation to pledge a significant sum of foreign currency was the European Union, which will provide a EUR 7.4 billion aid package, made up of loans and grants, aiming to prevent the influx of illegal migration to Europe, much of which travels through Egypt before crossing the Mediterranean.