With the loan of $ 3 billion acted on Friday, Cairo obtained from the international institution nearly 23 billion dollars in seven years, without the reforms requested in return having been carried out so far.
MO12345LEMONDE
This is a minimum plan that the International Monetary Fund (IMF) has been acted for Egypt. Friday, December 16, the board of directors of the financial institution gave the green light to a loan of $ 3 billion (2.83 billion euros) over forty-six months, which should give the country a puff of ‘Oxygen to face the economic crisis in which the war in Ukraine has plunged it since February 24 and to try to restore the confidence of foreign investors who have turned away from this emerging market of 104 million inhabitants.
A slice of $ 347 million will be immediately disbursed. This loan, and the additional funding expected from multilateral organizations, will however be insufficient to get the country out, one of the most indebted in the Middle East, of a much more structural crisis. This is also the third that Cairo has contracted since 2016, the year when the country has plunged into a crisis unprecedented following the upheavals of “Arab Spring”.
With the loans conceded to absorb the effects of the Pandemic of Covid-19, Egypt has a total of the IMF nearly 23 billion dollars in seven years, which makes it the second largest debtor of the ‘ institution, after Argentina. This new loan should allow additional funding of approximately $ 14 billion from the international and regional partners in Egypt, said the IMF, which includes new funding from the Gulf countries and others “by the through the current disinvestment of public assets as well as traditional forms of financing for multilateral and bilateral creditors, “said the lender.
Refund of debt
The IMF estimates that the external financing deficit of Egypt will be $ 16 billion during the program’s duration, said Finance Minister Mohamed Maait in November. “Egypt is in a difficult situation, underlines Timothy Kaldas, researcher at the Tahrir Institute for Middle East Policy. It will be necessary to seriously consider to implement more significant structural reforms in order to have chances of obtaining the Type of funding it needs. In the meantime, the quality of life of the Egyptians will continue to deteriorate, which is worrying. “
The outbreak of oil prices and raw materials following the war in Ukraine hit the country hard, the world’s leading importer. The gulf sponsors had to fly to his rescue, with deposits and investment promises, after the release of more than $ 22 billion in foreign capital. A major part of the State’s revenues is devoted to the reimbursement of the debt. The IMF has set the goal of reducing from 89. 70.4 % to reduce the public debt ratio to the gross domestic product (GDP) by Cairo) in Cairo by Cairo by 2027.
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