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IMF Approves Egypt's Expanded, $8 Bln Loan Program

FILE PHOTO: A general view shows a crowd and shops at Al Ataba, a market in central Cairo, Egypt February 10, 2020. REUTERS/Mohamed Abd El Ghany/File Photo
FILE PHOTO: A general view shows a crowd and shops at Al Ataba, a market in central Cairo, Egypt February 10, 2020. REUTERS/Mohamed Abd El Ghany/File Photo
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IMF Approves Egypt's Expanded, $8 Bln Loan Program

FILE PHOTO: A general view shows a crowd and shops at Al Ataba, a market in central Cairo, Egypt February 10, 2020. REUTERS/Mohamed Abd El Ghany/File Photo
FILE PHOTO: A general view shows a crowd and shops at Al Ataba, a market in central Cairo, Egypt February 10, 2020. REUTERS/Mohamed Abd El Ghany/File Photo

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 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.

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Germany, Austria will Release Reserve Oil in Effort to Calm Surging Prices

Fishermen work in front of oil tankers south of the Strait of Hormuz Jan. 19, 2012, offshore the town of Ras Al Khaimah in United Arab Emirates. (AP Photo/Kamran Jebreili, File)
Fishermen work in front of oil tankers south of the Strait of Hormuz Jan. 19, 2012, offshore the town of Ras Al Khaimah in United Arab Emirates. (AP Photo/Kamran Jebreili, File)
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Germany, Austria will Release Reserve Oil in Effort to Calm Surging Prices

Fishermen work in front of oil tankers south of the Strait of Hormuz Jan. 19, 2012, offshore the town of Ras Al Khaimah in United Arab Emirates. (AP Photo/Kamran Jebreili, File)
Fishermen work in front of oil tankers south of the Strait of Hormuz Jan. 19, 2012, offshore the town of Ras Al Khaimah in United Arab Emirates. (AP Photo/Kamran Jebreili, File)

Germany and Austria said Wednesday they are releasing parts of their oil reserves following an International Energy Agency request for members to release a record 400 million barrels to help temper energy price spikes due to the Iran war.

Japan also said it will release some of its reserves starting Monday.

Group of Seven energy ministers met Tuesday at IEA headquarters in Paris. IEA executive director Fatih Birol said afterwards they had discussed all available options, including making IEA emergency oil stocks available to the market, The AP news reported.

The largest-ever previous collective release of emergency stocks by IEA member countries was 182.7 million barrels, in the wake of the energy shock prompted by Russia’s full-scale invasion of Ukraine in 2022.

IEA members currently hold over 1.2 billion barrels of public emergency oil stocks, with a further 600 million barrels of industry stocks held under government obligation.

Germany’s economy minister Katherina Reiche said the country would release parts of its oil reserves following the IEA request “to release oil reserves amounting to 400 million barrels, which is a good 54 million tons.”

She added it would take a couple of days before the delivery of the first quantities.

“Germany stands behind the IEA’s most important principle of mutual solidarity," Reiche said.

In response to US and Israeli strikes, Iran has attacked commercial ships across the Persian Gulf, escalating a campaign of squeezing the oil-rich region as global energy concerns mount. Iran has effectively stopped cargo traffic in the Strait of Hormuz through which about a fifth of all oil is shipped from the Persian Gulf toward the Indian Ocean.

Iran has also targeted oil fields and refineries in Gulf Arab nations, aiming at generating enough global economic pain to pressure the United States and Israel to end their strikes. Reports of sea mines allegedly laid by Iran in the Strait of Hormuz have also fueled concerns about the security of international energy supplies.

G7 energy ministers on Tuesday announced they supported in principle “the implementation of proactive measures to address the situation, including the use of strategic reserves.”

According to the IEA, export volumes of crude and refined products are currently at less than 10% of pre-war levels.

Austrian Economy Minister Wolfgang Hattmannsdorfer said his country was releasing part of the emergency oil reserve and extending the national strategic gas reserve, adding: “One thing is clear: in a crisis, there must be no crisis winners at the expense of commuters and businesses.”

The German government also said it will introduce a measure to allow gas stations in Germany to raise fuel prices no more than once a day. The federal government wants to introduce this as quickly as possible, Reiche said.

In Austria, starting Monday, price increases at gas stations will be allowed only three times a week, the country’s economy minister said.

Business

Saudi Arabia's Industrial and Mining Sectors Record Strong Growth in 2025

The Ministry of Industry and Mineral Resources logo
The Ministry of Industry and Mineral Resources logo
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Saudi Arabia's Industrial and Mining Sectors Record Strong Growth in 2025

The Ministry of Industry and Mineral Resources logo
The Ministry of Industry and Mineral Resources logo

The Ministry of Industry and Mineral Resources announced the 2025 performance indicators for the Kingdom’s industrial and mining sectors, highlighting continued growth and increased investment.

According to the ministry, 1,660 new industrial licenses were issued in 2025, with investments exceeding SAR76 billion and the potential to create approximately 34,847 jobs.

During the same year, 1,201 factories began production, representing investments of more than SAR31 billion and employing around 45,454 workers, reflecting the sector’s growing appeal to both local and international investors.

In the mining sector, the ministry issued 736 new mining licenses. By the end of the year, the total number of active mining licenses reached 2,925, covering various license types across the sector.

These indicators underscore the ministry’s ongoing efforts to develop the mining industry, strengthen its global competitiveness, and position it as the third pillar of Saudi industry.

Business

US Consumer Prices Likely Increased in February Ahead of Iran Conflict

09 December 2025, Saxony, Dresden: A woman walks into a supermarket. (dpa)
09 December 2025, Saxony, Dresden: A woman walks into a supermarket. (dpa)
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US Consumer Prices Likely Increased in February Ahead of Iran Conflict

09 December 2025, Saxony, Dresden: A woman walks into a supermarket. (dpa)
09 December 2025, Saxony, Dresden: A woman walks into a supermarket. (dpa)

US consumer prices likely picked up in February as the cost of gasoline increased in anticipation of an escalating war in the Middle East, and with the conflict driving up oil prices, a further rise in inflation is expected in March.

The anticipated increase in the Consumer Price Index last month would also reflect the continued, but staggered pass-through from President Donald Trump's sweeping tariffs, which he pursued under a law meant for use in national emergencies, that have since been struck down by the US Supreme Court.

The Labor Department's consumer inflation report on Wednesday is, however, expected to show underlying price pressures rising moderately last month, thanks to relatively cheaper used motor vehicles and airline fares. It is unlikely to have any impact on near-term monetary policy, with the Federal Reserve expected to keep interest rates unchanged next week.

"The February CPI is likely to show that progress on lowering inflation is stalling out again," said Sarah House, ‌a senior economist at Wells ‌Fargo.

"Although the conflict in the Middle East started at the end of February, oil ‌and ⁠gasoline prices were ⁠already rising last month in anticipation of an escalation," House said.

The CPI likely increased 0.3% last month after climbing 0.2% in January, a Reuters survey of economists predicted. Estimates ranged from a 0.1% rise to a 0.3% increase. In the 12 months through February, the CPI was estimated to have advanced 2.4%, which would match January's increase, and reflect last year's high readings dropping out of the calculation.

The US central bank tracks the Personal Consumption Expenditures price indexes for its 2% inflation target.

Economists estimated that gasoline prices rose by about 0.8% in the CPI report after declining for two straight months.

Prices at the pump have jumped by more than ⁠18% to $3.54 per gallon since the US-Israeli war on Iran started at the end of February, ‌data from motorist advocacy group AAA showed. Oil prices shot up well ‌above $100 per barrel, before pulling back on Tuesday after Trump stated the war could end soon.

UPSIDE RISK TO FOOD PRICES FROM WAR

"The ‌recent 15% move alone suggests a 0.15-0.30 percentage point lift to headline inflation depending on how the conflict evolves," said ‌Andy Schneider, a senior US economist at BNP Paribas Securities.

Food prices likely maintained a moderate pace of increase, though Schneider added "a sustained oil price shock would raise fertilizer and transportation costs that could push food inflation higher later in the year."

Excluding the volatile food and energy components, the CPI was forecast to have gained 0.2% after rising 0.3% in January. The so-called core CPI inflation was likely curbed by a ‌decline in used motor vehicle prices, as well as smaller increases in rents and airline fares.

But prices for goods like apparel and household furnishings likely increased solidly as businesses passed ⁠on tariffs. January's Producer Price Index ⁠report showed a widening in margins, including for apparel, footwear and accessories retailing.

Though businesses have absorbed much of the import duties, economists said they were unlikely to continue doing so, citing among others persistently higher readings of input costs in the Institute for Supply Management surveys.

Trump has responded to the Supreme Court ruling by imposing a 10% global tariff, which he said would rise to 15%.

"The trouble is that there is evidence that input costs continue to escalate, even as the level of tariffs has mostly stabilized," said Stephen Stanley, chief US economist at Santander US Capital Markets. "The pass-through dynamic could persist for a while."

In the 12 months through February, the core CPI inflation is forecast to have increased 2.5% after rising by the same margin in January, also reflecting favorable base effects.

Economists said the tame core CPI readings were unlikely to translate into moderate core PCE inflation gains in February. January's delayed PCE price index data due on Friday is expected to show a solid increase in core inflation.

"Weighting differences and unexpected strength in PPI service prices are likely to produce a significantly larger increase in the broader consumption index," said Lou Crandall, chief economist at Wrightson ICAP. "Similar effects are likely to give the core PCE price index an upward bias in the February data due out on April 9."