CAIRO: The International Monetary Fund’s executive board has approved a three-year, $12 billion loan to Egypt to support its economic reform programme, the IMF said yesterday.
The IMF said the approval allows for disbursement of an initial tranche of $2.75bn of the loan. The remaining amount will be phased in over the duration of the programme, subject to five reviews, it said.
The Central Bank of Egypt received the $2.75bn tranche, which increased the country’s foreign reserves to $23.3bn, state television said.
Import-dependent Egypt has struggled to attract dollars and revive its economy since tourists and investors fled after the 2011 uprising.
Facing a gaping budget deficit, plummeting foreign reserves and a burgeoning currency black market, it agreed the IMF loan in August but had to secure $5bn to $6bn in bilateral financing for the deal to be completed.