Thursday April 18th, 2024
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Egypt to Pay USD 6.7 Billion to the IMF in 2024

Of the USD 6.7 billion, Egypt is expected to pay USD 261 million this January.

Cairo Scene

Egypt to Pay USD 6.7 Billion to the IMF in 2024

Egypt is set to pay USD 261 million to the International Monetary Fund (IMF) this January, as part of its total debt obligations of USD 6.7 billion to the Fund for the year. 

In December, Egypt made a payment of approximately USD 564 million, bringing its total payments to the IMF to around USD 3.764 billion. However, despite these repayments, Egypt remains the second-largest debtor to the IMF after Argentina.

The country's debt to the IMF has increased during the COVID-19 pandemic, with Egypt receiving an aid package of nearly USD 8 billion. In 2016, Egypt secured a loan of about USD 12 billion, which facilitated the implementation of an economic reform programme. However, due to the impact of the Russia-Ukraine war on Egypt's balance of payments and a resurgence of foreign currency crisis, Egypt once again turned to borrowing from the IMF. This led to the conclusion of an extended facilitation agreement, similar to the one in 2016, but at a reduced value of USD 3 billion, as the implementation of reforms faced obstacles.

Discussions between the IMF and the Egyptian government regarding additional financing are ongoing. The exact size of the financing is yet to be determined. 

Egypt expects to receive debt tranches worth USD 6.5 billion from October 2023 to October 2024, alongside Suez Canal revenues of USD 8.3 billion, according to the Central Bank of Egypt. However, the country faces significant repayment obligations, including USD 35.8 billion in debt installments and approximately USD 6.6 billion in interest.

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