IMF Mission Arrives in Egypt to Discuss $3 Billion Loan Program

A spokesperson for the International Monetary Fund (IMF) said on Friday, January 19th, that the IMF mission is currently present in Cairo to discuss a $3 billion loan from the fund and a reform program.

He stated that discussions are ongoing regarding additional funding to alleviate the pressures associated with the war in Gaza on Egypt.

The spokesperson mentioned that the mission, headed by Ivana Vladkova Höller, “will continue discussions regarding the first and second review of the Egyptian reform program supported by the extended Fund Facility. We will conclude at the end of the visit.”

The International Monetary Fund (IMF) stated last week that it is engaged in discussions with Egypt regarding policies that would contribute to the success of the IMF program worth three billion dollars. However, additional funding will be crucial for this purpose.

During a regular press conference, Julie Kozak, the spokesperson for the International Monetary Fund (IMF), stated that the amounts of financing and possible payments for Egypt are currently under discussion.

She added that discussions with the Egyptian authorities regarding policy improvements will continue in the coming weeks, including the need to tighten monetary and fiscal policy as well as move towards a flexible exchange rate policy.

Moody’s credit rating agency changed its future outlook for Egypt from “stable” to “negative” on Thursday, citing the increasing risks associated with the ongoing weakness in the country’s credit position amid difficulties in rebalancing the overall economy and exchange rate.

The agency stated in a statement that the change in outlook reflects “increased risks associated with the ongoing weakness of Egypt’s credit position amid difficulties in rebalancing the overall economy and exchange rate, despite continued efforts to improve public finances and support the public sector,” as explained by the agency in its statement issued on Thursday.