Egypt to Receive First Tranche of IMF Loan Next Week amid Increasing Dollar Flows

Director of the International Monetary Fund Kristalina Georgieva speaks meets with Egypt’s Prime Minister Mostafa Madbouly in the presence of the Governor of the Central Bank and Minister of Finance. (IMF Director on X)
Director of the International Monetary Fund Kristalina Georgieva speaks meets with Egypt’s Prime Minister Mostafa Madbouly in the presence of the Governor of the Central Bank and Minister of Finance. (IMF Director on X)
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Egypt to Receive First Tranche of IMF Loan Next Week amid Increasing Dollar Flows

Director of the International Monetary Fund Kristalina Georgieva speaks meets with Egypt’s Prime Minister Mostafa Madbouly in the presence of the Governor of the Central Bank and Minister of Finance. (IMF Director on X)
Director of the International Monetary Fund Kristalina Georgieva speaks meets with Egypt’s Prime Minister Mostafa Madbouly in the presence of the Governor of the Central Bank and Minister of Finance. (IMF Director on X)

Egypt will receive the first tranche of an expanded loan agreement with the International Monetary Fund (IMF) next week, Prime Minister Mostafa Madbouly said during a press conference on Saturday.

The expanded $8 billion financial support program enables the immediate release of $820 million, according to a statement by the IMF.

Madbouly noted that he was following up with Central Bank Governor Hassan Abdullah on foreign currency flows, indicating that the first installment of the IMF loan will be received next week.

He also stressed that the government will work to ensure the completion of all reform paths and the return of dollar flows to normal.

The IMF had announced that its Executive Board had conducted the first and second review of Egypt’s economic program, and decided to increase the original agreement with Egypt by $5 billion.

In a statement, the Fund said that Egypt can withdraw about $820 million immediately, indicating that implementing economic policies within the framework of the program is important to confront the macroeconomic challenges in this country.

It continued that the Ras Al-Hekma investment deal will ease financing pressures in the near term, stressing that external shocks and delayed policy adjustments affected economic activity in Egypt, which led to a slowdown in growth to 3.8 percent in the fiscal year 2022-2023.

“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. These developments increased the complexity of macroeconomic challenges and called for decisive domestic policy action supported by a more robust external financing package, including from the IMF,” the statement read.



Fire, Smoke Upend Western Canada’s Summer Tourism Season

 A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
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Fire, Smoke Upend Western Canada’s Summer Tourism Season

 A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)

Severe wildfire seasons are increasingly hurting western Canada's lucrative tourism industry, with some visitors beginning to avoid the busy late-summer months due to concerns about uncontrolled blazes, smoke-filled skies and road closures.

After a scorching start to July, nearly 600 wildfires are now ablaze across British Columbia and Alberta, including a huge fire that this week devastated the picturesque tourist town of Jasper in the Canadian Rockies.

Dozens of communities, including popular holiday spots in British Columbia's Kootenay region, are under evacuation orders and several highways are closed.

This year's surge in wildfire activity comes after Canada endured its worst-ever year for wildfires in 2023, when more than 15 million hectares (37 million acres) burned, including parts of the city of West Kelowna in the heart of British Columbia's wine region.

Ellen Walker-Matthews, head of the Thompson Okanagan Tourism Association, said the industry was seeing a lot more last-minute travel decisions instead of booking in advance.

"It's a huge blow. July and August are traditionally the busiest months in the region," said Walker-Matthews, adding that while her region has been relatively unscathed by wildfires this summer, some visitors are choosing to avoid interior British Columbia altogether.

The members of the British Columbia Lodging and Campgrounds Association are reporting a 5-15% drop in bookings from a year ago, with the biggest declines coming from the hotter Okanagan and Cariboo regions, said Joss Penny, who heads the association.

"The concern is that this is something we have to live with and we have it every year now," said Penny.

Although wildfires in Canada's forests are natural and common, scientists say drier, hotter conditions fueled by climate change are leading to more volatile and frequent blazes.

'SMOKEY SKIES'

Some events, like the Salmon Arm Roots and Blues Festival, usually held in August, have now been rescheduled to earlier in the summer to avoid what is now seen as peak smoke season. The festival, which was cancelled last year due to nearby wildfires, was this year moved to July to benefit from "less smokey skies."

Wildfires and extreme climatic events are prompting tourists to "change their plans not just temporarily, but permanently," said Elizabeth Halpenny, a tourism researcher and professor at the University of Alberta, noting that seasonal workers in the sector are often the hardest hit as they have few protections during a bad season or amid a cataclysmic fire.

Tourism contributed C$7.2 billion to the British Columbia economy in 2022, and C$9.9 billion to Alberta in 2023, according to the latest government data.

Jasper National Park is one of Canada's premier tourist destinations, with more than 2 million visitors a year flocking to see its pristine mountain landscapes and abundant wildlife, including grizzly bears, moose and elk.

Kelly Torrens, vice-president of product at international tour company Kensington Tours, described western Canada as a bucket-list destination. But the company now has 49 trips that were supposed to pass through Jasper this season in limbo. Six others were forced to evacuate the park when the fire hit.

Parks Canada has cancelled all camping reservations within Jasper National Park until Aug. 6 and with potentially 50% of the town's structures destroyed by fire, the cleanup and rebuild could take years.

Halpenny is among those hedging their bets.

"I've booked a campsite stay in the mountain parks but at the same time, I booked a campsite out on the prairie somewhere and that's my backup plan because I don't want to miss out on my vacation with my family."