Egypt's IMF loan payout delayed by final details amid difficult environment
The International Monetary Fund's executive board has delayed consideration of an $820 million disbursement to Egypt until July 29 in order to finalize some policy details, IMF spokesperson Julie Kozack said on Thursday, adding that such delays are not unusual amid difficult circumstances.
Egypt continues to struggle with a challenging regional environment caused by the Israel-Gaza conflict and stepped up attacks by Houthi militants on Red Sea shipping, which has reduced Egypt's revenues from the Suez Canal by more than half compared to a year ago, Kozack told a news briefing.
The board approval for the third review of Egypt's expanded $8 billion loan program was originally expected on July 10. Kozack declined to discuss the additional details that needed to be finalize.
But she said that amid downside risks and structural challenges, it was important that Egypt "stays the course on economic policies that will ultimately best serve the people of Egypt. And I can say that our staff is of course, actively engaged with the Egyptian authorities.