Maged Shawky, head of Catalyst Partners, said the total funding that will be provided through the International Monetary Fund deal is about $17 billion, including $3 billion of loan value, with the rest being funding from regional financial institutions and countries that have economic relations with Egypt.
Shawky added, in an interview with Al-Arabiya, that the value of funds from institutions and countries amounted to $9 billion when the deal was announced in precedence.
He said that the Egyptian government’s support from Gulf partners has seen a clear and win-win transformation as Gulf institutions invest in successful company with attractive valuations, and this represents a long-term commitment.
Shawky indicated that deals between the International Monetary Fund and Egypt in recent years have seen currency liberalization for a short time, and then a different policy.
He referred to the fund in the last agreement, which wanted not to repeat what happened in 2016 by fully liberalizing a foreign exchange, but preferred that the liberalization be managed, albeit with extreme reservations.
He expected the central bank to raise interest rates at next Thursday’s meeting because of inflation in Egypt is still in increase.
Shawky added that the central bank aims to reduce inflation through the use of various monetary means, noting that market expectations suggest an increase of 1% or more.
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