IMF could augment Egypt’s loan programme over effects of Gaza war

The International Monetary Fund is seeking to increase Egypt’s loan programme due to the effects of the war in neighbouring Gaza,

The International Monetary Fund is seeking to increase Egypt’s loan programme due to the effects of the war in neighbouring Gaza, according to a Reuters report.

Managing Director Kristalina Georgieva told Reuters on Friday that the IMF was “seriously considering” a possible augmentation of Egypt’s $3bn loan programme due to economic difficulties posed by the Israel-Gaza war.

Egypt began seeking a new IMF loan after Russia’s war in Ukraine pushed up its bills for wheat and oil while dealing a blow to tourism from two of its largest markets, Ukraine and Russia.

In October last year, the IMF agreed to grant Cairo the loan, adding that the loan programme would include “policies to unleash private sector growth including by reducing the state footprint, adopting a more robust competition framework, enhancing transparency, and ensuring improved trade facilitation”.

Georgieva’s comments came in an interview on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit in San Francisco.