The International Monetary Fund’s (IMF) executive board approved a $12bn, three-year extended fund facility (EFF) to Egypt on Friday to support the country’s economic reform programme.
The EFF-supported programme will help Egypt restore macroeconomic stability and promote inclusive growth. It also aims to correct external imbalances, restore competitiveness, place the budget deficit and public debt on a declining path, boost growth, and create jobs while protecting citizens of lower income.
The Central Bank of Egypt had floated the Egyptian pound last week, in an effort to liberalise the economy. The decision was followed by a decrease in fuel subsidies as a part of the government’s economic reform programme.
Moreover, the executive board’s approval allows for an immediate receipt of $2.75bn. The remaining amount will be phased over the next three years, subject to five reviews.