IMF, Egypt reach staff-level agreement to disburse USD 2 bn loan tranche
IMF, Egypt reach staff-level agreement to disburse USD 2 bn loan tranche: The IMF delegation that was in town reviewing Egypt’s economic reform program has reached a staff-level agreement with the government to disburse the next USD 2 bn tranche of a USD 12 bn extended fund facility. The announcement followed a positive third review of progress on economic and structural reform, which concluded that “Egypt has begun to reap the benefits of its ambitious and politically difficult economic reform program,” said Egypt Mission Chief Subir Lall.
Leading indicators: Inflation is cooling, GDP growth is accelerating, FX reserves are up, and social safety remains a priority for the government, according to Lall, who added that the country is “on track to achieve a primary budget surplus [of 2% of GDP] … with general government debt as a share of GDP expected to decline for the first time in a decade.” Finance Minister Amr El Garhy had said he expects the tranche to be disbursed by the end of June. The IMF’s executive board will still sign off on the agreement, which should bring Egypt’s total disbursements to USD 8 bn. You can read the full announcement here.