IMF approves payment of $2.02 billion tranche of $12 billion loan

Ahram Online , Saturday 30 Jun 2018

This brings the total amount disbursed by the IMF to Egypt to $8.06 billion

The International Monetary Fund logo (Photo: Reuters)

The International Monetary Fund's executive board has completed the third review of Egypt's economic reform programme, which is supported by a $12 billion Extended Fund Facility, allowing the disbursal of $2.02 billion to Egypt, according to an IMF press release.

The disbursal of this fourth tranche of the loan brings the total amount received by Egypt under the EFF arrangement to $8.06 billion.

The three-year deal was approved by the IMF in November 2016 to support Egypt's economic reform programme.

The reform programme aims at cutting the budget deficit and spurring economic growth.

Measures taken have included floating the Egyptian pound, introducing a value-added tax, and cutting fuel and electricity subsidies.

The government has also implemented a social safety programme, including cash transfers, as well as raising salaries and pensions.

IMF staff had reached staff-level agreement on the third review for Egypt’s EFF in May.

Egypt received the third tranche of the $12 billion loan in December 2017, after a second review by the IMF which took place in October.


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