Egypt would ask the IMF for a new aid program of $ 15 million to deal with the consequences of the war in Ukraine

The Egyptian government announced on August 22 that it is close to an agreement with the International Monetary Fund (IMF) on a new financing program intended to support the economy of this North African country which is undergoing severe whip the consequences of the Russian-Ukrainian conflict.

“The government is at the stage of final agreements concerning new IMF financing,” Prime Minister Mostafa Madbouly (photo) said in a statement, without revealing the amount that Egypt could borrow from the international financier.

The IMF announced on July 8 that it had “fruitful” discussions with Egypt on a fourth financing program under the Extended Credit Facility (MEDC).

This new program promises to be vital for the Egyptian economy which is struggling with strong financial pressures linked to the consequences of the war in Ukraine.

As foreign investors have pulled $20 billion out of Egypt’s debt market since the start of the Russian-Ukrainian conflict, the Arab world’s most populous country faces higher food and fuel import bills. high. The American bank Goldman Sachs has estimated, in a recent analysis, that Egypt could need a 15 billion dollar aid program from the IMF to meet its financing needs over the next three years.

Cairo had already appealed to the IMF three times in recent years, borrowing $12 billion in 2016 under the Extended Fund Facility, $2.8 billion under the Rapid Financing Instrument in 2020 and 5.2 billion under a stand-by arrangement in the same year.