Finance Minister Mohamed Maait said an assistance package from the IMF is in the “final confirmation” stage.
Maait was speaking with reporters late yesterday on the sidelines of the IMF and World Bank annual meetings. Cabinet is hoping the long-awaited package could be announced before the gathering wraps up
Egypt is pushing to tie up a crucial financial package from the International Monetary Fund at annual meetings in Washington this week, hoping to stem a currency crisis that has restricted imports and sparked market unease over foreign debt repayments.
Egypt began talks with the IMF for a financial support package in March, soon after the Ukrainian crisis threw its already unsettled finances into further disarray and led foreign investors to pull nearly $20 billion out of Egyptian treasury markets in a matter of weeks.
The foreign exchange shortage has led to a sharp drop in non-oil imports, which fell by 20% in the April-June quarter, according to central bank data. This has led to a shortage of input for both factories and retailers, and a backlog of goods and commodities including wheat at ports. Banks have tightened limits on dollar withdrawals from Egyptian pound accounts.
“The conclusion of negotiations with the IMF are becoming increasingly urgent amid growing foreign exchange scarcity, supply shortages and persistent inflation,” said Callee Davis of Oxford Economics.
