Egypt reveals a funding gap of $ 16 billion

The Egyptian government revealed an external funding gap of $ 16 billion in about 4 years, but plans to reduce it and secure sufficient funds to fully cover its needs after the conclusion of the agreement with the International Monetary Fund, which could encourage overseas investors to pump new investments into the country.

Finance Minister Mohamed Maait confirmed that the International Monetary Fund’s $ 3 billion deal will meet Egypt’s funding requirements during the 46-month program period.

Qatar’s sovereign wealth fund deposited $ 1 billion with the Central Bank of Egypt, as the gas-rich Gulf state approaches a deal to acquire state holdings in some important companies.

Last October, Egypt accepted an International Monetary Fund bailout package, adopted a more flexible currency system and raised interest rates.

The urgency for the Egyptian economy to close the external financing gap is in increase, while the high prices of oil and materials prime severely affected one of the world’s largest wheat importers and tourist losses from Russia and Ukraine reduced earnings in foreign currency. The conflict put pressure on the Egyptian pound and prompted it to seek assistance from the International Monetary Fund.

The Arab Gulf states have pledged more than $ 20 billion in deposits and investments in Egypt.

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