The deficit of Egypt's net foreign assets decreased by 586 million dollars in April.

CANOPUS, May 31 (Reuters) - Egypt's net foreign assets (NFA) deficit decreased by $586 million in April, according to data from the central bank released on Friday. This decline occurred after...International Monetary FundAt the beginning of the month, I paid Egypt the first tranche of the loan amounting to 820 million dollars. As of the end of April, the budget deficit stood at 174 billion Egyptian pounds (3.68 billion dollars), down from 200 billion pounds at the end of March. This marks the third consecutive month of deficit reduction.

Egypt signed an agreement with the IMF for financial support amounting to $8 billion on March 6, following a sharp devaluation of its currency, which led to an influx of portfolio investments and remittances from migrant workers. In early April, the country received the first tranche of $820 million from the IMF.

Money transfers, portfolio investments, and 24 billion dollars directed towards real estate fromUnited Arab Emirates (UAE)contributed to reducing the deficit of the CIA by:

• 17.8 billion dollars in March
• 7.04 billion dollars in February

In February, Egypt received an initial payment of 5 billion dollars from the UAE for the rights to develop land on the Mediterranean coast, another 5 billion dollars in early March, and the final 14 billion dollars in early May.

The assets of commercial banks abroad increased by 606 million dollars in April, while their liabilities rose by 653 million dollars, according to calculations by Reuters based on central bank data.

The net international reserves (NIR) consist of assets from both the central bank and commercial banks that belong to non-residents, minus their liabilities. Before the agreement with the IMF, the central bank used NIR for more than two and a half years to support its national currency. In September 2021, the NIR amounted to a positive 3.9 billion dollars. (1 dollar = 47.2200 Egyptian pounds)

(Report preparation: Patrick Verr; Editing: Kirsten Donovan)