Egypt rejects reports about seeking $15b loan from IMF

Egypt’s Finance Minister Mohamed Maait has denied reports that the Arab Republic is seeking a $15 billion-loan from the International Monetary Fund (IMF) to shore up its finances.

Goldman Sachs Group Inc. in a July report indicated that Egypt may need to secure $15 billion from the IMF to meet its funding requirements over the next three years.

Responding to Al Kahera Wal Nas channel on the question about the size of the loan, Maait said the figure is not accurate.

“This figure is not true at all,” he said adding that it’s “definitely” less. The minister did not however elaborate on details.

The loan from the IMF will supplement $20 billion already landed from foreign investors this year.

Egypt, a major food importer, has struggled to cope with record grain prices fueled by Russia’s invasion of Ukraine. The two countries at war previously supplied most of Egypt’s wheat and were a major source of visitors for its economically important tourism industry.

The country has been one of the IMF’s biggest borrowers in recent years, agreeing to a three-year, $12 billion loan program in 2016. More recently, Egypt secured a $5.2 billion stand-by arrangement as well as $2.8 billion under the IMF’s Rapid Financing Instrument, helping authorities tackle the impact of the coronavirus.