The International Monetary Fund (IMF) has deferred its annual 'Article IV consultation' with Egypt until the country passes a delayed review of its $3 billion rescue program, according to a summary released on Wednesday. This delay prevents Egypt from unlocking approximately $700 million in loan tranches and a $1.3 billion resilience fund, which could impact Gulf investments.
The IMF is actively coordinating with Egyptian authorities to finalize this review under the Extended Fund Facility for macroeconomic stabilization. Regular IMF health checks involve local meetings and report presentations to its executive board.
As the IMF's second-largest borrower after Argentina, Egypt faces substantial financing needs that are not being met by foreign direct investments, portfolio inflows, and asset sales, as per Morgan Stanley (NYSE:MS)'s analysis.
The country's economic situation is further complicated by currency devaluations and political decisions by President Abdel-Fattah El-Sisi. With an upcoming presidential election and concerns about Egypt's 105 million population, the economic complexity increases.
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