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Tuesday, 5 February 2019

The long-awaited fifth tranche of Egypt’s IMF loan is on its way, finally

Egypt will get the fifth tranche of its USD 12 bn IMF facility any day now: The International Monetary Fund’s executive board has signed off on the institution’s fourth review of Egypt’s economic reform program, giving the green light to the disbursal of the fifth USD 2 bn tranche of the USD 12 bn Extended Fund Facility, the IMF said in a statement. The tranche, which the Finance Ministry said will arrive “within the coming days,” will bring the total Egypt has received to USD 10 bn.

Background: The IMF’s approval came a little over a week after IMF Managing Director Christine Lagarde sang our praises, but the decision was reportedly delayed amid concerns from the IMF on how Egypt would implement a new fuel pricing strategy. The government announced last month it would bring the mechanism into effect in April. The mechanism will first apply to 95 Octane fuel and then be rolled out to other, more popular grades. The formula will see prices fluctuate within 10% of international averages.

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