Extension of $3bln loan to Egypt is critical amid Israel-Gaza conflict: IMF's Kozack

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Extending the International Monetary Fund’s (IMF) $3 billion loan to Egypt is “critical” to guarantee the successful program implementation, the IMF’s Director of Communications Julie Kozack said in a press briefing.

She did not specify the amount of the larger package that is required, nor did she give an estimated time of announcement.

She added that the IMF is currently debating a set of guidelines with the relevant Egyptian authorities to facilitate the conclusion of the Extended Fund Facility’s (EFF) initial and second reviews. These discussions are set to last until the coming weeks.

“What I can say on this is that Egypt already faces a complicated and challenging macroeconomic situation, and that situation has been made more complicated by the conflict between Israel and Gaza,” Kozack said.

US Treasury Secretary Janet Yellen pledged unwavering support for Egypt's economy and ongoing reforms.

In November, Managing Director of the IMF Kristalina Georgieva said the fund is “seriously considering” a possible increase in the $3 billion loan program for Egypt.