Egypt and the IMF reached an agreement for a $3 billion loan for 46 months.

“We are happy to announce that the Egyptian authorities and the IMF team have reached a staff-level agreement on the economic policies to be supported by a 46-month arrangement under the Extended Fund Facility (EFF). The new EFF, with a requested access of about US$ 3 billion, aims to provide Egypt with a balance of payments and budget support while catalyzing additional financing from Egypt’s international and regional partners to maintain economic stability, address macroeconomic imbalances and spillovers from the war in Ukraine, protect livelihoods, and push forward deep structural and governance reforms to promote private sector-led growth and job creation. The agreement is subject to approval by the IMF’s Executive Board, which is expected to discuss the authorities’ request in December,” Ivanna Vladkova Hollar, Mission Chief for Egypt, said in a statement issued by the IMF.

The statement also read that Egypt is expected to receive additional financing of about $5 billion from multilateral and regional partners in the financial year 2022/23.

“In the context of the EFF, the Egyptian government has also requested financing under the newly created Resilience and Sustainability Facility (RSF) aimed at providing affordable, long-term financing to help build resilience, including against climate change. Discussions on access under this facility, which could unlock up to an additional US$1 billion for Egypt, will take place in the coming months,” Hollar added in her statement.

The CBE raised interest rates by 2% and moved to a flexible exchange rate regime earlier this morning, making the EGP surpass the 22 mark against the USD.