Last Update 22:22
Wednesday, 24 July 2019

Egypt's cabinet approves IMF loan agreement; refers deal to Parliament

Ahram Online , Wednesday 11 Jan 2017
Minister of Finance Amr El-Garhy (Al-Ahram)
Minister of Finance Amr El-Garhy (Al-Ahram)
Views: 3996
Views: 3996

Egypt's cabinet approved the International Monetary Fund (IMF) loan agreement in a meeting on Wednesday, referring it to the country's parliament, the state news agency MENA reported. 

In mid-August 2016, Egypt reached a staff-level agreement with the IMF over a $12 billion loan to endorse the Arab nation's fiscal reform programme, which the government embarked on in 2014 in an attempt to curb the growing state budget deficit, estimated at 12.2 percent of GDP in 2015/16.

The programme includes cutting subsidies and the introduction of new taxes, such as the Value Added Tax.

Last November, the Central Bank of Egypt (CBE) said it received an initial $2.75 billion from the IMF following the IMF's board’s approval of the loan.

Article 127 of the Egyptian constitution stipulates that the executive power may not obtain a loan or funding or engage in a project that is not listed in the approved state budget which entails expenditure from the state treasury within the subsequent period, except with the approval of the House of Representatives. 

On 3 November 2016, the CBE decided to freely float the pound and raise key interest rates as part of a set of reforms aimed at alleviating a dollar shortage and stabilising the country's flagging economy.

Short link:


Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.

© 2010 Ahram Online.