Back to the complete issue
Thursday, 7 May 2020

IMF expected to approve USD 2.7 bn in fresh funding for Egypt on Monday

The IMF is expected to approve USD 2.7 bn in new funding for Egypt when it meets on Monday, Bloomberg reports, citing an official familiar with the matter. Egypt applied last month for new funding via a one-year rapid financing instrument (RFI) and a stand-by arrangement (SBA) to help support its balance of payments and maintain its reform momentum. “The IMF staff is in discussions with the authorities and expects to present the RFI request to the board on 11 May,” IMF Mission Chief for Egypt Uma Ramakrishnan told Bloomberg. A report in the local press earlier this week claimed that Egypt could receive the first tranche of funding by Monday, citing an unnamed central bank official.

The calendar page for the IMF’s executive board for Monday shows only one agenda item: a discussion of Egypt’s request for an RFI.

We’re still not clear on how much we’re going to get via the SBA: The agreement will, like the RFI, last for one year and will be accompanied with a sovereign bond issuance to shore up Egypt’s current account, the official said, without providing a figure. The Institute of International Finance (IIF) said in a research note this week that, overall, we could receive up to USD 8.4 bn (or 300% of our quota) under both arrangements, but this would depend on financing needs, repayment capacity, and our track record in using previous IMF funds.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.