IMF ‘likely to drop currency demands for loans to Egypt’

IMF ‘likely to drop currency demands for loans to Egypt’

The International Monetary Fund is likely to waive its demand that the Egyptian government make the pound free floating in order to receive additional loans, experts said on Tuesday. Cairo agreed a $3 billion IMF support package in December 2022, but received only an initial payment of $347 million. The original deal said Egypt should […]

Support plan agreed in 2022

Gaza conflict hurting economy

Loans may top $5bn

The International Monetary Fund is likely to waive its demand that the Egyptian government make the pound free floating in order to receive additional loans, experts said on Tuesday.

Cairo agreed a $3 billion IMF support package in December 2022, but received only an initial payment of $347 million.

The original deal said Egypt should allow the pound “to be determined freely against other currencies”. The government has subsequently sought to increase the package to $5 billion.

The currency requirements are now likely to be relaxed, said analysts from BMI, in response to the damage done to Egypt’s economy since the start of the conflict in Gaza.

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