IMF approves Egypt’s expanded, $8 billion loan program

A general view shows a crowd and shops at Al Ataba, a market in central Cairo. The Gaza crisis, aggravated by Houthi attacks from Yemen on shipping in the Red Sea, has slowed down revenues from tourism and shipping, two of Egypt’s main sources of foreign exchange. (REUTERS/File Photo)
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Updated 30 March 2024
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IMF approves Egypt’s expanded, $8 billion loan program

  • The Gaza crisis has affected Egypt's tourism industry and Houthi attacks on Red Sea vessels has slowed down Suez Canal revenues
  • Tourism and shipping are two of Egypt’s main sources of foreign exchange

CAIRO: Egypt received approval on Friday from the International Monetary Fund’s executive board for an expanded, $8 billion financial support program that enables the immediate release of $820 million, the IMF said in a statement.

The IMF agreed to widen the agreement after Egypt’s wobbly economy was further hurt by the Gaza crisis, which slowed growth in tourism and triggered attacks from Yemen on shipping in the Red Sea, halving Suez Canal revenue. Tourism and shipping are two of Egypt’s main sources of foreign exchange.
“The difficult external environment generated by Russia’s war in Ukraine was subsequently aggravated by the conflict in Gaza and Israel, as well as tensions in the Red Sea,” the IMF statement said.
The agreement expanded on an earlier $3 billion, 46-month Extended Fund Facility signed in December 2022 which was put on hold after Egypt did not follow through on pledges to unpeg its currency, speed up the sale of state assets and implement other reforms.

The expanded agreement was first announced on March 6, when Egypt’s central bank hiked key interest rates by six percentage points and allowed the country’s currency to plummet against the dollar.
“A strong economic stabilization plan is being implemented to correct policy slippages,” the IMF said, focusing on a liberalized foreign exchange system, tightening of fiscal and monetary policy, reduced public investment and greater space for the private sector.
This would include a continued reduction of subsidies, which consume a large portion of government expenditures. Last week Egypt raised prices on a wide range of fuel products.
“It remains essential to replace untargeted fuel subsidies with targeted social spending as part of a sustained fuel price adjustment package,” the IMF statement said.
The IMF also said Egypt had established a new framework to monitor and control public investment that would help manage excess demand, but that the state and military would need to withdraw from economic activity.
“Integrating transparently off-budget investment into macroeconomic policy decision making will be critical,” it added.
Egypt has come under pressure to reduce spending on large public projects, especially a new $60 billion capital it has been building the desert east of Cairo.
Egypt last month agreed to sell the rights to develop prime land at Ras El Hekma on the Mediterranean coast to the United Arab Emirates for $24 billion. This month Egypt also received pledges of $6 billion in financing from the World Bank Group and $8.1 billion from the European Union.
The statement projected that Egypt’s growth would slow to 3 percent in the financial year to end-June 2024 from 3.8 percent in 2022/23, before recovering to about 4.5 percent in 2024/25.


Lebanon security official says Israel struck central Beirut

Updated 3 sec ago
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Lebanon security official says Israel struck central Beirut

BEIRUT: A Lebanese security official told AFP that an Israeli strike hit a central neighborhood of the capital Beirut on Monday, the third such attack in the last 24 hours.
“An Israeli air strike hit close to the Al-Zahraa Husseiniya in Zuqaq Al-Blat,” he told AFP requesting anonymity, referring to a Shiite place of worship in the densely-populated district. An AFP correspondent in a nearby area heard two blasts, while reporters in another part of Beirut heard ambulance sirens.

US hits Israeli settler group with sanctions over West Bank violence

Updated 7 min 37 sec ago
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US hits Israeli settler group with sanctions over West Bank violence

  • Sanctions block Americans from any transactions with Amana and freeze its US-held assets
  • Settler violence had been on the rise prior to the eruption of the Gaza war, and has worsened since the conflict began

WASHINGTON: The United States imposed sanctions on Monday on an Israeli settler group it accused of helping perpetrate violence in the occupied West Bank, which has seen a rise in settler attacks on Palestinians.
The Amana settler group “a key part of the Israeli extremist settlement movement and maintains ties to various persons previously sanctioned by the US government and its partners for perpetrating violence in the West Bank,” the Treasury Department said in a statement announcing the sanctions.
The sanctions also target a subsidiary of Amana called Binyanei Bar Amana, described by Treasury as a company that builds and sell homes in Israeli settlements and settler outposts.
The sanctions block Americans from any transactions with Amana and freeze its US-held assets. The United Kingdom and Canada have also imposed sanctions on Amana.
Israel has settled the West Bank since capturing it during the 1967 Middle East war. Palestinians say the settlements have undermined the prospects for the establishment of a Palestinian state in the West Bank and the Gaza Strip with East Jerusalem as its capital.
Israel views the West Bank as the biblical Judea and Samaria, and the settlers cite biblical ties to the land.
Settler violence had been on the rise prior to the eruption of the Gaza war, and has worsened since the conflict began over a year ago.
Most countries deem the settlements illegal under international law, a position disputed by Israel which sees the territory as a security bulwark. In 2019, the then-Trump administration abandoned the long-held US position that the settlements are illegal before it was restored by President Joe Biden.
Last week, nearly 90 US lawmakers urged Biden to impose sanctions on members of members of Israeli Prime Minister Benjamin Netanyahu’s government over anti-Palestinian violence in the West Bank.


Around 100 projectiles fired from Lebanon into Israel: army

Israel’s Iron Dome missile defence system intercepts incoming projectiles over Tel Aviv. (File/AFP)
Updated 11 min 8 sec ago
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Around 100 projectiles fired from Lebanon into Israel: army

  • Israel’s first responders said two people, including a 65-year-old woman with a shrapnel wound to the neck, sustained light injuries in northern Israel

JERUSALEM: The Israeli military said Hezbollah fired around 100 projectiles from Lebanon into northern Israel on Monday, with the country’s air defense system intercepting some of them.
Israel’s first responders said two people, including a 65-year-old woman with a shrapnel wound to the neck, sustained light injuries in northern Israel and were taken to hospital.
The military said in a first statement that “as of 15:00 (1300 GMT), approximately 60 projectiles that were fired by the Hezbollah terrorist organization have crossed from Lebanon into Israel today.”
Later it said, “following the sirens that sounded between 15:09 and 15:11 in the Western Galilee area, approximately 40 projectiles were identified crossing from Lebanon into Israeli territory.”
Israel has escalated its bombing of targets in Lebanon since September 23 and has since sent in ground troops, following almost a year of limited, cross-border exchanges of fire begun by the Iran-backed Hezbollah militants in support of Hamas in Gaza.


‘No plan B’ to aid Palestinian refugees: UNRWA chief

Updated 11 min 41 sec ago
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‘No plan B’ to aid Palestinian refugees: UNRWA chief

  • Israel ordered ban on organization that coordinates nearly all aid in war-ravaged Gaza
  • UNRWA provides assistance to nearly six million Palestinian refugees

GENEVA: There is no alternative to the UN agency supporting Palestinian refugees, its chief said Monday, following Israel’s order to ban the organization that coordinates nearly all aid in war-ravaged Gaza.
“There is no plan B,” the head of the United Nations Relief and Works Agency for Palestine Refugees, Philippe Lazzarini, told reporters in Geneva.
Within the UN “there is no other agency geared to provide the same activities,” providing not only aid in Gaza but also primary health care and education to hundreds of thousands of children, he said.
He has called on the UN, which created UNRWA in 1949, to prevent the implementation of a ban on the organization in Israel and occupied East Jerusalem, which was approved by the Israeli parliament last month.
The ban, which is due to take effect in January, sparked global condemnation, including from key Israeli backer the United States.
UNRWA provides assistance to nearly six million Palestinian refugees across Gaza, the West Bank, Lebanon, Jordan and Syria.
Israel has long been critical of the agency, but tensions escalated after Israel in January accused about a dozen of its staff of taking part in Hamas’s attack on southern Israel on October 7, 2023.
A series of probes found some “neutrality related issues” at UNRWA and determined that nine of the agency’s roughly 13,000 employees in Gaza “may have been involved” in the attack, but found no evidence for Israel’s central allegations.
Lazzarini was in Geneva for a meeting of UNRWA’s advisory commission to discuss the way forward at the organization’s “darkest moment.”
“The clock is ticking fast,” he told the commission, according to a transcript.
Describing Gaza as “an unrelenting dystopian horror,” he warned that “what hangs in the balance, is the fate of millions of Palestine refugees and the legitimacy of the rules-based international order that has been in place since the end of the Second World War.”
Anton Leis, head of Spain’s international cooperation and development agency and chair of the advisory committee, told reporters that there was “simply no alternative to UNRWA,” which he said had seen more than 240 staff members killed in Gaza since the start of the war.
“It is the only organization that possesses the staff, the infrastructure and the capacity to deliver lifesaving assistance to Palestinian refugees at the scale needed, especially in Gaza,” he said.
Lazzarini agreed, saying that “If you are talking about bringing in a truck with food, you will surely find an alternative,” but “the answer is no” when it comes to education and primary health care.
Lazzarini warned that a halt to UNRWA’s activities in Israel and East Jerusalem would block it from coordinating massive aid efforts inside Gaza.
“This would mean we could not operate in Gaza,” he said, adding that it would not be possible to coordinate the deconfliction with Israeli authorities to ensure aid convoys can move safely.
“The environment would be much too dangerous,” he said.
The UNRWA chief has charged that Israel’s main objective in its attacks on the agency is to strip Palestinians of their refugee status, undermining efforts toward a two-state solution.
“We have to be clear, even if UNRWA today would cease its operation, the statue of refugee would remain,” he said.
Without the agency, he said, the responsibility for providing services to the Palestinian refugees “will come back to the occupying power, being Israel.”
If no one steps in to fill the void, he said, it “will create a vacuum ... (and) sow the seeds for more extremism, more hate in the future.”
He called on the international community to go beyond statements of condemnation and put far more pressure on Israel.
“We feel alone.”


‘Jordan stands firm against Israeli aggression on Gaza,’ King Abdullah says as he opens parliament

King Abdullah addresses newly elected parliamentarians at the start of their four-year term on Monday. (Jordan News Agency)
Updated 29 min 44 sec ago
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‘Jordan stands firm against Israeli aggression on Gaza,’ King Abdullah says as he opens parliament

  • Addressing lawmakers, King Abdullah said Jordan was working tirelessly through Arab and international efforts to stop the war

RIYADH: Jordan stands firm against the “aggression on Gaza and Israeli violations in the West Bank,” the country’s King Abdullah said on Monday as he opened a newly elected parliament.

Addressing lawmakers, he said Jordan was working tirelessly through Arab and international efforts to stop the war.

“Jordan has exerted tremendous efforts, and Jordanians have valiantly been treating the wounded in the direst of circumstances. Jordanians were the first to deliver aid by air and land to people in Gaza, and we will remain by their side, now and in the future,” he said.

In his speech, the king told newly elected parliamentarians at the start of their four-year term that the current parliament was “the first step in the implementation of the political modernization project, on a track to bolster the role of platform-based parties and the participation of women and young people.”

“This requires parliamentary performance, collective action, and close cooperation between the government and parliament, in accordance with the constitution,” the king was reported as saying by Jordan News Agency.

King Abdullah said the government aimed to provide Jordanians with a decent life and empower youths while equipping them for the jobs of the future.

“We must continue implementing the Economic Modernisation Vision to unleash the potential of the national economy and increase growth rates over the next decade, capitalising on Jordan’s human competencies and international relations as catalysts for growth,” the king said.