CAIRO (Reuters) – Egypt could receive the first $2.5 billion tranche of a $12 billion International Monetary Fund loan as early as September, IMF Egypt Mission Chief Chris Jarvis told Reuters in an interview on Thursday.
Egypt would receive the tranche immediately after IMF board approval without waiting for specific reform measures, and the remaining tranches would be disbursed based on periodic reviews of government reform measures, Jarvis said.
The first review would take place in February or March, he said. The Egypt program will require additional financing in the first year, including assurances of $5 billion-$6 billion in bilateral support before it goes to the IMF board for approval.
Egypt will make the case that this support needs to come earlier in the program to help provide a cushion as the country moves to a more flexible exchange rate regime, he added.
(Reporting by Lin Noueihed; Writing Ahmed Aboulenein)