Egypt reaches $4.8bn loan agreement with IMF

Egypt reaches $4.8bn loan agreement with IMF

Egypt has reached a staff-level agreement with the International Monetary Fund's technical team, currently on a visit to Cairo, for a $4.8 billion loan, the fund announced Tuesday Al Ahram online reported.

The agreement is expected to open the door to some $14.5 billion in financing to allow Egypt to implement an economic programme that it has proposed to the IMF.

The IMF said in a statement that agreement had been reached for "a 22-month Stand-By Arrangement (SBA) in the amount of about $4.8 billion (equivalent to about 3.16 billion SDR [Special Drawing Rights], or 335 per cent of Egypt's quota in the IMF)."

The loan proposal will be presented to the IMF's board of directors for final approval on 19 December, according to Hany Kadry, assistant to Egypt's finance minister who is responsible for IMF negotiations.

The first tranche of the loan is expected to be disbursed immediately after the board's approval is secured.

The loan will bear an interest rate of 1.06 per cent. Additional fees will also be attached to the facility, Reuters reported.

An IMF technical team arrived in Cairo some two weeks ago to discuss Egypt's economic programme, which will accompany the loan agreement.

To date, the Egyptian government has not disclosed any details of the programme.

Ashraf El-Arabi, Egypt's minister of planning and international cooperation, said the government would announce details of the loan on Wednesday.

The IMF, for its part, described what Egypt could expect following finalisation of the loan agreement.

"The [Egyptian] authorities' programme will be supported by a financing package of $14.5 billion in loans and deposits on favourable terms from a range of bilateral and multilateral partners, including the IMF," Andreas Bauer, chief of the IMF's Middle East and Central Asia department, said in a Tuesday statement.

To cover its widening budget deficit, Egypt currently borrows from the local market at rates as high as 15 or 16 per cent.

Fiscal consolidation is a "key pillar" of the economic programme, which would be carried out by instituting tax reforms and restructuring subsidies, according to the IMF.

Egypt's cabinet said in a statement on Tuesday that its programme aimed to cut the budget deficit to 8.5 per cent of GDP by 2013/14, down from the 11 per cent expected in the current 2012/13 fiscal year.

"The top tax rate will not change, but new tax brackets will be added and the exemption level will increase," the finance ministry's Kadry told Ahram Online.

Earlier this month, Egypt's cabinet approved a new tax bracket of 22 per cent for annual incomes between LE1 million and LE10 million.

Kadry explained that the other main feature of Egypt's economic programme was its focus on cutting fuel subsidies, a policy that the current cabinet has discussed intensively since its appointment this summer.

As for monetary policy, Kadry declined to comment, saying the matter was in the hands of the Central Bank of Egypt.

The IMF did not reveal any details of the proposed monetary measures, including the prospect of a possible devaluation of the Egyptian pound.

"Monetary and exchange rate policies will be geared towards ensuring declining inflation over the medium term; enhancing Egypt's international competitiveness to stimulate trade and attract capital inflows; and increasing international reserves to protect against external shocks," the IMF statement read.

Global COVID-19 death toll could hit two million before vaccine in wide use: WHO
Global COVID-19 death toll could hit two million before vaccine in wide use: WHO
Volume of maritime cargo transshipment from Portugal via Turkey disclosed
Volume of maritime cargo transshipment from Portugal via Turkey disclosed
STAR Refinery has dynamic decision-making process on oil purchases
STAR Refinery has dynamic decision-making process on oil purchases
Loading Bars
US embassy in Azerbaijan urges to reconsider non-essential travel outside Absheron Peninsula
Global COVID-19 death toll could hit two million before vaccine in wide use: WHO
'Intellectual Field' to allow stabilize production level in Kazakhstan
Russian online newspaper publishes article about Azerbaijani president’s speech at UN
Iran's auto giants to talk over hybrid vehicles production
Azerbaijani ministry discloses volume of toxic emissions from cars
Georgian expert: Armenian authorities controlling separatist regime in Karabakh crossed red line
Azerbaijani minister of economy reviews activity of industrial enterprises in Ganja (PHOTO)
Volume of maritime cargo transshipment from Portugal via Turkey disclosed
Tactical-special and combat training classes underway in Azerbaijan (PHOTO/VİDEO)
EBRD and FAO to assist Georgia in field of agro tourism
STAR Refinery has dynamic decision-making process on oil purchases
Uzbekistan to be supplied with Russian coronavirus vaccines
Uzbekistan, Tajikistan to maintain Uzbek energy and water resources balance
Azerbaijan’s Bakcell preparing discounts for teachers within project
UK study shows rapid test has diagnostic sensitivity over 99%
Kazakhstan's grain export volume revealed
Amazon hiring 150 employees in Israel
Baku Higher Oil School on top of grade ranking among universities in Azerbaijan
Mortgage lending via state line in Azerbaijan up
Russia leading exporter of polymer products to Turkmenistan
Volume of deposits up in Georgia
September occupancies up in Georgian regional hotels
Kazakhstan, Azerbaijan strengthening co-op in medical tourism
Rates of dollarization on loans and deposits up in Georgia
Volume of deposits in Azerbaijan grows
Russia increases exports of frozen vegetables to Turkmenistan
Bakcell talks about network congestion and secure internet
Azerbaijani banks increase lending to clients
Iranian government is modernizing agriculture in Tehran Province
Italy lowers import of Turkish cars
Loans and deposits, expressed as percentage of GDP, increase in Georgia
Netherlands increase export volume to Kazakhstan year-on-year
Georgian hazelnuts exports up
Azerbaijan's Anglo Asian Mining reveals 1H2020 income
Several industrial projects to be implemented in Kazakhstan's Almaty
Azerbaijan's Azexport portal to place insurance services
Sooner Armenia withdraws its armed forces from the occupied territories of Azerbaijan, sooner the conflict will be resolved (PHOTO)
Moscow reports 1,560 new coronavirus cases, highest since June 12
Azerbaijani schoolchildren perform successfully at 32nd International Olympiad in Informatics (PHOTO)
Azerbaijan confirms 137 more COVID-19 recoveries
ADB: Developed capital markets enhance financial stability in Azerbaijan
Covid-19 daily infections swell 12% to new record
Energy efficiency to be increased at Uzbek manufacturing enterprises
Shell books tanker to load crude at Libya's Zueitina oil port
Turkmenistan’s Oil Refineries extends tender for gasoline purchase
Kazakhstan's QazTech Ventures to fund Uzbek startups
Gas exports from Azerbaijan to Turkey significantly up
VTB Bank, Entrepreneurship Development Fund of Azerbaijan issuing loans to businesses
Azerbaijani FM receives ambassador of Greece
Vietnam interested in import of Azerbaijani products
EU working with Georgian partners to strengthen cybersecurity in country
Azerbaijani ministry talks introduction of contactless payment in public transport in districts
Central Bank of Azerbaijan to hold deposit auction
Azerbaijan discloses data on tobacco exports for 2019
BP: Oil demand to remain central part of energy system for next 10–15 years
Azerbaijani MP: Armenia resettling terrorists to Nagorno-Karabakh region, facts prove ASALA's presence
Apple says has always abided by Irish law as EU appeals court ruling
Precious metal prices in Azerbaijan up again after decline
Iran assigns housing units to low income
Money supply increased in Uzbekistan
Uzbekistan to export fuel diesel to Pakistan
Georgia reveals volume of premiums attracted by insurance companies
UN highlights Azerbaijani president’s speech at 75th session of UN General Assembly
Kazakhstan's largest oil pipeline company to buy power stations via tender
LNG demand to double over next 20 years
Volume of gas production by Turkmenistan’s Lebapgazchykarysh revealed
Expert talks putting Azerbaijan's domestic tourism back on its feet
Deputy FM: Rejecting proposals to resolve conflict, Armenian leadership makes negotiations meaningless
Road in border village of Azerbaijan’s Gazakh district being overhauled (PHOTO)
Israeli politician: We find Azerbaijan a good friend of Israel
Around 6,000 people internationally wanted by Russia
Buffett-following investment trust to list in London
EU Special Representative: EU has strong interest in peace, stability in South Caucasus
Georgia reports 265 new cases of coronavirus
Instagram fixes breach found by Check Point
US’ share in Azerbaijan's total imports grows
FAO provides strategic support for Uzbek Agriculture Ministry
Conference of the People’s Council of Turkmenistan was held at the high organizational level
Italian geopolitical analyst: Mechanism needed for implementation of UNSC resolutions on Nagorno-Karabakh conflict
Turkmenistan to expand areas for growing crops
Azerbaijani oil prices down
Georgia, Azerbaijan united by energy and transport projects of international importance
President Ilham Aliyev receives EU Special Representative (PHOTO)
Chairman Israel Empowerment Lobby: Azerbaijan tolerates all religions
Electronic Water Portal launched in Azerbaijan (PHOTO)
Agro Service: Azerbaijan has no shortage in fertilizers
Сoordinated fake news attacks on Azerbaijan debunked (PHOTO)
Georgia takes part in high-level Open Government Summit together with world leaders
Belarus raises goods export to Azerbaijan
Georgia hosts Cyber ​​Security Forum
Demand for Turkish clothing in Georgian market declines
Turkmenistan working to improve transport macrostructure
Azerbaijani Ambassador presents his credentials to President of Mexico
Georgia to start producing anti-hail nets for orchards
German export expectations hit highest level since October 2018
President Ilham Aliyev: Non-fulfillment of Security Council resolutions undermines prestige of UN
Irish foreign minster says EU-UK trade deal breakthrough possible
Overhaul of Azerbaijani 'President Heydar Aliyev' tanker completed
Azerbaijani president: Aim pursued by Armenia to maintain current status-quo of occupation, to annex occupied territories
All news