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Egypt reveals a $16 billion funding gap

The Egyptian government revealed a gap in external financing amounting to 16 billion dollars over about 4 years, but it expected to reduce it and secure sufficient funds to cover its needs in full after concluding the agreement with the International Monetary Fund, which may encourage investors abroad to pump new investments in the country.

Egyptian Finance Minister Mohamed Maait confirmed that the $3 billion International Monetary Fund agreement will meet Egypt’s financing requirements during the 46-month program period.

read more: Annual inflation in Egypt rises to 16.2% in October

Qatar’s sovereign wealth fund, He deposited a billion dollars with the Central Bank of Egyptat a time when the gas-rich Gulf state is close to a deal to acquire state stakes in some major companies.

Last October, Egypt agreed to a rescue package from the International Monetary Fund, adopted a more flexible currency system and raised interest rates.

The urgent need for Egypt’s economy to bridge the external financing gap is increasing, while high oil and commodity prices have severely affected one of the world’s largest wheat importers, and the losses of tourists from Russia and Ukraine have reduced foreign exchange earnings. The conflict pressured the Egyptian pound and pushed it to seek assistance from the International Monetary Fund.

Gulf Arab states pledged more than $20 billion in deposits and investments to Egypt.

read more: The price of the dollar in Egypt records new levels

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