News

IMF Grants Final Approval to Egypt’s $12 Billion Loan

IMF Grants Final Approval to Egypt’s $12 Billion Loan

Pedestrians walk past the International Monetary Fund headquarters' complex in Washington Sunday, May 2, 2010. (AP Photo/Cliff Owen)
Pedestrians walk past the International Monetary Fund headquarters’ complex in Washington Sunday, May 2, 2010. (AP Photo/Cliff Owen)

The Executive Board International Monetary Fund (IMF) gave on Friday its final approval to Egypt’s three-year loan, worth USD 12 billion, to support the country’s economic reform program.

“The EFF-supported program will help Egypt restore macroeconomic stability and promote inclusive growth. Policies supported by the program aim to correct external imbalances and restore competitiveness, place the budget deficit and public debt on a declining path, boost growth and create jobs while protecting vulnerable groups,” a press release from the IMF reads.

According to the IMF’s press release, the first tranche amounts to USD 2.75 billion, of which the Executive Board’s approval “allows the immediate purchase,” while “the remaining amount will be phased over the duration of the program, subject to five reviews.”

While Egypt had reached a staff-level agreement with the IMF in August, Egypt was waiting for the final say from the fund’s Executive Board.

The approval came after Egypt fulfilled a number of prerequisites the fund had put forth for the fund, including floating the Egyptian pound, introducing new taxes and securing USD 6 billion in bilateral financing for the loan.

Egypt has been struggling to regain its rapidly depleting foreign currency reserves since the ouster of Hosni Mubarak in 2011. In the five years since, Egypt’s foreign reserves have gone down more than 50 percent, from USD 36 billion to USD 19.041 billion as of October 2016.

Wal-Mart Sued for Selling Fake 'Egyptian Cotton' Products
Return of Tourists? Thomas Cook to Operate 36 Weekly Flights to Egypt

Subscribe to our newsletter


News

More in News

Two Christians Killed by Militants in Egypt’s North Sinai amid Growing Attacks on Copts

Toqa EzzidinFebruary 23, 2017

#StopTheWait: Messi Visits Egypt to Promote Affordable Hepatitis C Treatment and Tourism

Egyptian StreetsFebruary 22, 2017

More Visas for Less African Immigrants: Europe’s Offer to Egypt

Aya NaderFebruary 22, 2017

Opening Female Gyms in Saudi Arabia: Saudi Women Unhurriedly Acquire Basic Rights

Toqa EzzidinFebruary 22, 2017

Egypt Agricultural Exports Surge after Currency Float

Seif GhallabFebruary 22, 2017

Russia to deliver 50 MiG-29 fighters to Egypt on Schedule: Report

Egyptian StreetsFebruary 22, 2017

Globally Renowned Consulting Firms to Lead Reform of Egypt’s Ministry of Petroleum

Seif GhallabFebruary 21, 2017

11 Sentenced to Death for Port Said Massacre, Celebrations Held

Aya NaderFebruary 20, 2017
Egyptian Streets is an independent, young, and grass roots news media organization aimed at providing readers with an alternate depiction of events that occur on Egyptian and Middle Eastern streets, and to establish an engaging social platform for readers to discover and discuss the various issues that impact the region.

© 2017 ES Media UG. All Rights Reserved.