Egypt has secured the $6bn in bilateral financing required for the $12bn lending programme from the IMF, according to Egypt’s Finance Minister Amr el-Garhy.

In August this year, Egypt and the IMF reached a staff-level agreement for a three-year $12bn loan. The agreement was subject to Cairo meeting IMF-set conditions such as the flotation of the Egyptian pound, the cutting of state subsidies, the introduction of value-added tax (VAT) and finally the securing of $6bn in additional funds to support the country’s foreign reserves.

With the finalising of the $6bn and other conditions, Cairo is hoping to receive the first tranche of the IMF loan within a couple of weeks, according to several sources close to the matter.

It is understood that China and Saudi Arabia have helped Egypt plug the financing gap. In early October local media reported that Riyadh had made a $2bn deposit into the central bank, while local analysts have told MEED the Chinese offered support for the remaining amount.

No official statement has been made regarding where the funds have come from.