Kristalina Georgieva, managing director of the International Monetary Fund (IMF), has stated that the organization is “seriously cosnidering” increasing its loans to Egypt in response to the economic repercussions arising from the conflict between Israel and Gaza.
The ongoing war, which has severely impacted the economies of Gaza and the West Bank, is also presenting economic challenges for neighboring countries such as Egypt, Lebanon, and Jordan, according to Georgieva. She made these remarks to Reuters during the Asia Pacific Economic Cooperation (APEC) Summit.
Read more: What is the IMF’s perspective on Egypt, Tunisia, and Lebanon?
According to Georgieva, the neighboring countries, including Egypt, Lebanon, and Jordan, are facing specific economic challenges due to the war. The loss of tourism and increased energy costs are expected to be particularly burdensome for these nations. However, Georgieva did not provide specific details regarding the extent of the potential loan increase or the timeline for its implementation.
In December 2022, the IMF granted approval for a 46-month loan program worth $3 billion to Egypt. This financial support was provided to assist Egypt in addressing challenges such as high inflation and the devaluation of its currency. The loan, granted under the Extended Fund Facility, outlined a 46-month period during which Egypt would receive the economic assistance from the IMF.
However, there have been delays in conducting the two required reviews stipulated by the IMF for Egypt to receive the loan. Unverified reports indicate that these reviews may be rescheduled for early 2024, after the presidential elections scheduled for December of the current year. This adjustment is believed to be an effort to avoid any potential impact on the popularity of the incumbent President Abdel Fattah El-Sisi during the election period.
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