June 29, 2019

The International Monetary Fund (IMF) has announced that a new agreement with Egypt will not be negotiated and that the priority was to end the current programme.

“The fund is not negotiating with Egypt for a new programme,” said Camilla Andersen, Assistant Director of the IMF’s Communications Department.

This came in response to comments made by Finance Minister Mohamed Maith to Bloomberg about Egypt’s attempt to conclude a new agreement with the IMF by October.

At a press conference on Thursday, Anderson said the bank was ready to support Egypt achieve high growth rates.

Egypt has so far received around $10 billion of the $12 billion loan, leaving the last tranche of $2 billion, which will be disbursed based on the fifth review of the economic reform programme.

Egypt begins the repayment of the International Monetary Fund (IMF) loan starting in 2021, with semi-annual payments of around $182 million. Egypt will end its repayment of the last tranche by July 2029.

The IMF set a number of conditions and procedures that the government should implement until the sixth tranche of the loan is disbursed, the most important of which is to slash subsidies on fuel to cost price.