Cairo has been seeking financing under the RSF since 2022, hoping to unlock up to an additional $1 billion [Getty]
The International Monetary Fund (IMF) has approved the disbursement of $1.2 billion to Egypt following the fourth review of the country’s $8 billion economic reform program.
Additionally, the IMF’s executive board approved Egypt’s request for an arrangement under the Resilience and Sustainability Facility (RSF), granting access to approximately $1.3 billion, the IMF statement said.
Cairo has been seeking financing under the RSF since 2022, hoping to unlock up to an additional $1 billion.
On Monday, Egypt reported a sharp drop in headline inflation for February, largely due to financial reforms implemented as part of the IMF support program.
Annual urban consumer price inflation fell to 12.8 percent in February, down from 24 percent in January. Core inflation also dropped significantly, falling to 10 percent year-on-year in February from 22.6 percent the previous month.
With the IMF deal and record UAE investments, analysts and bankers expect foreign investors to largely maintain their holdings in Egyptian treasury bonds.
Egypt, which has been struggling with high inflation and foreign currency shortages, agreed to the expanded IMF program in March 2024.
The country’s economic challenges were worsened by a sharp decline in Suez Canal revenue, attributed to regional tensions over the past year.
(Reuters)
