Egypt secures $2 billion financing from international banks

According to a statement from the Central Bank of Egypt (CBE), the bank has reached a deal to secure a $2 billion loan from global banks ahead of the International Monetary Fund’s (IMF) meeting to evaluate Egypt’s $12 billion loan request. Accordingly, the bank has initiated a repurchase transaction with a consortium of international banks for $2 billion in funding with a maturity of 1 year.

The bank reported in the statement that the transaction will bolster the liquidity and size of the international reserves of the CBE.

In order to overcome a hard-currency shortage and to recover from poor economic conditions, the bank unexpectedly announced that it was floating the Egyptian Pound against all foreign currencies, devaluing the current exchange rate by 47.7% on November 3. In addition, the Egyptian government also cut fuel subsidies.

The head of IMF, Christine Lagarde reported that they have appraised Egypt’s recent moves to stir up the faltering economy and she called on the IMF Executive Board to finalize the country’s request for $12 billion in loans when they meet on November 11.