CAIRO, May 31 (Reuters) - Egypt's net foreign assets (NFAs) deficit contracted by $586 million in April, central bank data showed on Friday, after the International Monetary Fund paid an $820 million loan instalment to the country early in the month.
The end-April NFA deficit shrank to 174 billion Egyptian pounds ($3.68 billion) from 200 billion pounds at end-March, according to the data, the third straight month of decline.
Egypt signed an $8 billion financial support package with the IMF on March 6 after sharply devaluing its currency, triggering a flood of portfolio investments and remittances from workers abroad. It received a first $820 million tranche from the IMF in early April.
The remittances, portfolio investments and a $24 billion real estate investment from the United Arab Emirates (UAE) shrank the NFA deficit by $17.8 billion in March and $7.04 billion in February.
Egypt received an initial $5 billion payment from the UAE for the development rights to land on the Mediterranean coast in February, another $5 billion in early March and a final $14 billion in early May.
Commercial banks' foreign assets climbed by $606 million in April while their liabilities rose by $653 million, according to Reuters calculations based on central bank data.
Central bank foreign assets rose by $1.02 billion while foreign liabilities declined by $393 billion.
NFAs represent both central bank and commercial bank assets held by non-residents, minus their liabilities.
Before the IMF agreement, the central bank had been drawing on NFAs more than two and a half years to help support the country's currency. In September 2021, NFAs stood at a positive $3.9 billion. ($1 = 47.2200 Egyptian pounds) (Reporting by Patrick Werr; Editing by Kirsten Donovan)
