Egypt expects $1.2B loan tranche from IMF in January: Kouchouk
Updated 1/6/2025 9:08:00 AM
Arab Finance: Egypt is expected to receive a new tranche worth $1.2 billion from the International Monetary Fund (IMF) in January, Asharq Business cited Minister of Finance Ahmed Kouchouk.
Kouchouk noted that the state will not request an increase in the value of the program.
Egypt negotiated with the IMF to reduce the number of goods exemptions from the value-added tax (VAT). Hence, the exemptions will cover only three to four items, instead of nearly 19, the minister pointed out.
He highlighted the possibility of increasing wages, adding that such a move is “possible”.
The minister voiced concern about the size of the country's external debt, which stands at $152 billion, pledging to reduce it by about $2 billion annually.
Egypt’s debts due this year amount to $16 billion, in addition to other debts, Kouchouk mentioned.
He elaborated that 80% of these debts will be paid through real and additional resources, while the remaining 20% will be paid through soft loans from international institutions.
The country aims to offer new debt issues valued at $3 billion in global markets during the first half (H1) of 2025, targeting a wide segment of investors.
Similar to the private sector, state-owned companies and sovereign entities, including the New Urban Communities Authority (NUCA), will pay taxes to the state budget starting this fiscal year.
The Administrative Capital for Urban Development Company (ACUD) is already paying taxes to the public treasury, the finance minister indicated, adding that it paid off EGP 20 billion last year.
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