IMF support boosts investor confidence in Egypt

On January 18 the IMF mission chief for Egypt, Chris Jarvis, told a news conference that the country was set to receive the $1.25bn second tranche of its three-year loan from the fund, pending a review planned for the end of February.

“Although [economic indicators] for December have not been published yet, early indications are that the benchmarks for the next tranche of the loan are likely to be met,” Jarvis said.

The IMF released the first tranche of $2.75bn immediately after approving the loan in November; however, details of the agreement and an expected reform timetable were not made available at that time.

Reforms required

Jarvis’ comments came at the release of the IMF staff report on Egypt’s request for the extended fund facility (EFF), which outlines in full the aims of the development programme.

According to the document, the loan instalments are contingent on the government acting to tighten Egypt’s fiscal position, improve the business environment and liberalise the economy.