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IMF approves $1.3B loan for Egypt

Businessmen Team economy 13 March 2025 02:17 PM
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IMF approves $1.3B loan for Egypt

The International Monetary Fund (IMF) has approved a $1.3 billion disbursement to Egypt under the Resilience and Sustainability Trust (RST). This funding is aligned with Egypt's 2050 Climate Change Strategy and its 2030 Nationally Determined Contributions (NDCs). It aims to support the implementation of the 2050 National Climate Change Strategy through a package of structural reforms.

This strategy resulted from collaborative efforts involving the Central Bank of Egypt, Ambassador Mohamed Nasr (Egypt's Ambassador to Vienna and Chief Financial Negotiator - Ministry of Foreign Affairs), and the Ministries of Finance, Planning and Economic Development, International Cooperation, Environment, Petroleum, Electricity and Renewable Energy, Water Resources and Irrigation, and the Cabinet's Information and Decision Support Center.

The Ministries of Finance and Environment outlined a ten-point structural reform package, addressing four key areas: accelerating decarbonization, analyzing climate-related financial risks, improving climate data and risk management, building resilience, bolestring the financial sector's ability to withstand climate change and supporting climate finance, and identifying, measuring, and disclosing the impact of investment plans, programs, and projects on national climate change goals.

The joint statement emphasized that through collaborative efforts between the Ministries of Finance and Environment, the Central Bank, and other relevant ministries, Egypt successfully secured this funding to support its Paris Agreement commitments on climate change. This aligns with Egypt's path towards a just green transition. This agreement with the IMF, including structural reforms, strengthens Egypt's position ahead of COP30 and underscores the political leadership's prioritization of climate change as an existential issue and Egypt's commitment to multilateral cooperation.