MONITORING DESK
ISLAMABAD: In a statement, the International Monetary Fund said that in the coming years, Egypt will need to close a $17 billion financing. For this, the IMF said Egypt would need to mobilize funds from its global partners.
In order to preserve Egypt’s macroeconomic stability, the IMF okayed a 46-month arrangement worth $3 billion. This arrangement comes under the Extended Fund Facility. The approved funds will restore economic buffers along with facilitating inclusive and private-sector growth.
The EFF supports a policy package that provides a means to significant extra funding for partners of Egypt, including investments. These investments can be termed non-traditional funding.
Egypt is facing a number of balance-of-payments pressures. These include spillovers from the Ukrainian conflict. The war has led to decreased tourism receipts along with a higher food import bill. The conflict has also triggered a large capital outflow as the authorities have tried to stabilize the exchange rate. These steps have led to large reserve losses.
Funding shortfall being covered via global partners
The World Bank and other multilateral funding entities have continued to be strong backers of Egypt’s reform program.
Additionally, the Gulf Cooperation Council states have assured to roll over financial deposits at the Central Bank of Egypt.
