Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Al Mayadeen's correspondent in Gaza: Four fetuses and three premature babies died at Nasser Medical Complex due to malnutrition
Lebanese Ministry of Health: One person was killed in an Israeli airstrike on a car in the town of Burj Qalawieh, south Lebanon.
Al Mayadeen correspondent: The first ship of the Maghreb fleet delivering aid to break the siege on Gaza departs from the port of Gammarth in Tunisia.
Channel 12: Airspace closed at Ramon Airport due to fears of drone infiltration
IOF Spokesperson: Sirens sounded over an aircraft infiltration in the Bir Ora area, and details are being examined
Drone infiltration sirens sound north of the Gulf of Aqaba
Al Mayadeen's correspondent in Gaza: The Israeli occupation carried out five extremely violent raids on the western areas of Gaza City
Al Mayadeen's correspondent in Gaza: The Israeli occupation carried out major bombings in the Gaza Strip, the most violent since October 7
Yemeni Armed Forces spokesperson Brigadier General Yahya Saree: The missile force carried out a major operation using the Palestine 2 ballistic hypersonic missile, hitting several targets in occupied Yafa.
Sirens sound in large areas of occupied Palestine after a missile launch from Yemen was detected

Egypt stepping up talks to obtain IMF loan amid currency crisis

  • By Al Mayadeen English
  • Source: Agencies
  • 12 Oct 2022 19:38
4 Min Read

The Central Bank of Egypt hopes to strike a deal with the fund in order to alleviate its current currency crisis, despite that it already owes the IMF an astounding $11.6 billion over previous loans.

  • x
  • People crowd a street in Cairo, Egypt on April 14, 2020 (AP Photo/Nariman El-Mofty, File)
    People crowd a street in Cairo, Egypt on April 14, 2020 (AP Photo/Nariman El-Mofty, File)

Sources reported on Wednesday that Egypt's central bank governor, Hassan Abdalla, and finance minister Mohamed Maait are presently in Washington to push forward for negotiations over an IMF loan that would help alleviate the currency crisis Egypt is currently undergoing. 

Talks over an IMF support package go back to the month of March during which the crisis in Ukraine caused massive investments worth $20 billion to be pulled out of Egyptian treasury markets. 

In July, Finance Minister Mohamed Maait said that Egypt’s import bills jumped significantly by war-induced hikes in commodity prices, particularly oil and cereals, from $5bn to $9.5bn.

Since then, the Central Bank has been tapping into its own reserves and borrowing from local banks in a bid to keep its economy afloat. Banks have likewise limited withdrawals of US dollars to avoid further flights of capital. 

"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.  

On October 3, IMF managing director Kristalina Georgieva announced that an agreement between Egypt and the fund is within reach, though the content of the deal has yet to be disclosed. 

Some economists assume it could potentially allow the currency to move freely against foreign currencies, further providing the private sector with more leverage, as well as a big chunk of state assets.

The country already owes $11.6 billion to the IMF for a loan granted in 2016 and another two packages in 2020. Both are expected to be paid by 2025.

Related News

US economic growth 'unlikely to last', IMF Managing Director says

Failure to reach deal on US debt limit to result in contraction: IMF

Read more: Egypt currency hits near-record low: Central Bank

Economic growth slowed to 3.2% in the fourth quarter of 2021-2022 against 7.7% last year, although the annual expansion was 6.6%.

The Egyptian economy has taken a huge hit, with inflation reaching 14.6% in July, which prompted a hike in the price of imports and slashed forex reserves by $7.8 billion since February to $33.1 billion in July.

The imposition of import controls caused Egypt to run a current account deficit of $18.4 billion in its fiscal year of 2020/2021, which further fell to $16.6 billion in 2021. 

Bank data further reveals that between August 2021 and August 2022, Net foreign assets in the banking system fell by almost $30 billion, prompting investors to question whether Egypt will have the capacity to repay its debts within the coming years.

By the end of June, the government amassed a total of $155.7 billion in foreign debt, of which $42.2 billion are due to be paid between March 2022 and March 2023.

On September 14, the Central Bank of Egypt announced that it had obtained US$13 billion in deposits from countries in the Gulf over the first three months of 2022. The Gulf deposits were intended to bolster stocks of foreign currency that were heavily depleted over the past year.

Although the report did not specify when repayments will be due, it is likely they may be rolled out, including the $1.25 billion Eurobond that matures in February 2023 and money owed to multilateral organizations.

According to the Central Bank, Egypt has eight months left to pay back $6 billion to multilateral organizations. Another $8 billion are due to be paid next year.   

Read more: How normalization with "Israel" assassinated Egypt's economy

  • Kristalina Georgieva
  • Egypt
  • IMF
  • IMF loan

Most Read

The damaged building in the Katara neighborhood, Doha, Qatar, September 9, 2025 (Social media)

Hamas delegation survives Israeli assassination attempt in Qatar

  • Politics
  • 9 Sep 2025
Israeli police and rescue teams respond at the scene of a shooting attack where several people killed and injured in Jerusalem, Monday, Sept. 8, 2025 (AP)

Al-Quds shooting: 7 settlers killed, several critically injured

  • Politics
  • 8 Sep 2025
Pro-"Israel" conservative Charlie Kirk shot during Utah speech

Pro-'Israel' far-right Charlie Kirk shot dead during Utah speech

  • US & Canada
  • 11 Sep 2025
Uprising against Volker Turk at the Human Rights Council over Gaza.

Uprising against Volker Turk at the Human Rights Council over Gaza

  • Politics
  • 12 Sep 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
People protest against Israeli Prime Minister Benjamin Netanyahu during the 79th session of the United Nations General Assembly, in New York, on Friday, September 27, 2024 (AP)
Politics

'Israel' stops unfunded diplomacy ahead of UN, October 7 memorial

An Israeli Air Force fighter jet releases flares over the Gaza Strip, is seen from southern occupied Palestine, Thursday, May 8, 2025 (AP)
Politics

OIC summit draft: Israeli attack on Qatar risks normalization

People shout slogans and hold Palestinian flags while protesting during the twenty-first stage of La Vuelta cycling race from Alalpardo to Madrid, Spain, Sunday, Sept. 14, 2025. (AP)
Sports

Pro-Palestine protests force abrupt end to Vuelta a España finale

Damage is seen after an Israeli strike targeted a compound that hosted Hamas' political leadership in Doha, Qatar, on Wednesday, September 10, 2025 (AP)
Politics

Israeli regime faces growing isolation over Qatar strike: Reports

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS