Jakarta –
The International Monetary Fund (IMF) has held a meeting with the Egyptian side. The global lending institution is open to the extension of the funding facility.
Launching Reuters on Monday (11/7/2022), the IMF confirmed that it would continue to maintain relations with Egypt. Discussions on funding are also ongoing.
“In the coming period, we will continue our close relationship with the authorities to reach staff-level agreements,” the IMF said.
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The IMF announced that Egypt had submitted a request for a new program in March, as the country’s finances were under pressure from the wars between Russia and Ukraine.
Egypt itself has applied for IMF loans three times in recent years. First borrowed US$ 12 billion under the Extended Fund Facility in November 2016, then US$ 2.8 billion under the Rapid Financing Instrument in May 2020, and US$ 5.2 billion under the Stand-by Arrangement in June 2020.
Analysts say that because Egypt has exceeded the normal quota of IMF loans. It is likely that the country will face extraordinary access criteria, subjecting it to a higher level of scrutiny.
The governor of Egypt’s central bank previously said the scale of the new funding was not expected to be large, given that Egypt had taken a large allocation of the fund.
(the/hns)
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