Goldman Sachs expects IMF’s $12bln package in pipeline for Egypt

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Goldman Sachs expects the International Monetary Fund’s (IMF) new financial package for Egypt, currently on the way of being finalized, to be valued at $12 billion, Asharq Business reported, citing a note by the investment bank.

The upcoming package is likely to be divided into $7 billion from the IMF and $6 billion from external partners, the note added.

The leading financial services company attributes its estimates to the country’s increasing demands in the next four years to repay the medium and long-term loans, noting that the financing gap would reach $8 billion.

Additionally, Egypt will also need $17 billion for the recovery of the foreign currency market and to draw confidence in the EGP, as per the note.

The note revealed the country’s potential ability to mobilize the remaining $13 billion from the state-asset sales, the securitization of future dues in foreign currency, and recovering the previous levels of remittance flows.