Egypt to receive $820mln IMF third tranche within days

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Egypt is set to receive a $820m loan tranche from the International Monetary Fund (IMF) in the coming days after the fund’s executive board approved the third review of the country’s economic reform programme.

Finance Minister Ahmed Kouchouk hailed the board’s decision as a “vote of confidence” in the government’s efforts to overhaul the economy. The approval also “reassures” investors of Egypt’s ability to bolster economic stability, achieve financial and development goals, and strengthen social safety nets, he added.

Egypt has faced significant economic challenges, including soaring inflation and increased financing costs, amid global turmoil. However, Kouchouk said the government had demonstrated “resilience and flexibility” in managing public finances.

Strong budget performance during the last fiscal year and ambitious targets for the current one have been achieved despite “economic pressures and unfavourable external conditions”, he said.

The minister reiterated the government’s commitment to reducing the debt-to-GDP ratio and easing its associated burdens in the medium term. He stressed that financial policies are designed to create fiscal space for increased spending on health, education, and social protection.

Structural and corrective economic reforms will continue to be implemented, with a focus on empowering the private sector as the engine of growth, Kouchouk said. The government aims to improve the business climate, tax system, and customs procedures to attract investment and boost private sector contributions to the economy.