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
Palestinian platforms: Settlers storm Al-Aqsa Mosque complex under the protection of the occupation police
Palestinian platforms: The IOF detonated a booby-trapped robot east of the al-Zaytoun neighborhood, south of Gaza City
Syrian Defense: We call on all parties in Sweida to cooperate with security forces and exercise restraint
Al Mayadeen's correspondent: The Lebanese Army is continuing its investigations and will later announce any information that does not affect the confidentiality of the investigation
Al Mayadeen's correspondent: It has not yet been determined whether the detainees belong to ISIS or another organization
Al Mayadeen's correspondent: Around 10 people of different nationalities, including Lebanese nationals, were detained
Al Mayadeen's correspondent: The Lebanese army arrested a number of people in the Matn area of Mount Lebanon with possession it has not disclosed
Gaza Civil Defense spokesman: We have strong indications that there are martyrs, injuries, and trapped people in the Salah al-Din area
Gaza Civil Defense spokesman: Citizens should avoid Salah al-Din Street because anyone who approaches it is at risk of being directly targeted
Gaza Civil Defense spokesman: Reality is that there is a very limited retreat of the vehicles, with the occupation forces providing cover undeer fire up to Salah al-Din Street

Egypt stepping up talks to obtain IMF loan amid currency crisis

  • By Al Mayadeen English
  • Source: Agencies
  • 12 Oct 2022 20:38
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

Hezbollah SG reveals war details on Al Mayadeen for the first time

Hezbollah SG reveals war details on Al Mayadeen for the first time

  • Politics
  • 8 Jul 2025
Major ambush in Gaza kills 6 Israeli troops, injures dozens

Major ambush in Gaza kills 5 Israeli troops, injures 14

  • Politics
  • 8 Jul 2025
Israeli soldiers are seen in Beit Hanoun ahead of an operation by the al-Qassam Brigades, undated (Al-Qassam Brigades Military Media)

'Israel' on blast as media exposes report discrepancies in Gaza ambush

  • Palestine
  • 8 Jul 2025
Yemen Navy sinks ETERNITY C ship, shares footage of operation

Yemen Navy sinks ETERNITY C ship, shares footage of operation

  • Politics
  • 9 Jul 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
The Freedom Flotilla ship Handala as it departs for Gaza, where it aims to break the maritime blockade at a port in Syracuse, Sicily in southern Italy on July 13, 2025. (AFP)
Palestine

Freedom Flotilla's Handala departs Sicily in bid to break Gaza siege

The container ship CMA CGM Laperouse, left, docks at the Georgia Ports Authority's Port of Savannah, Sept. 29, 2021, in Savannah, Ga (AP)
Politics

US shipbuilding woes deepen as tariffs, outdated policies backfire

Gaza war raises ethical questions for ex-Obama, Biden officials
Politics

Mercenary firm tied to Gaza war crimes hires Obama-Biden PR operatives

'Israel' targets children in Gaza collecting water
Palestine

'Israel' strikes Gaza kids fetching water, blames it on 'malfunction'

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