International Monetary Fund approved USD 12 billion loan for Egypt

Pedestrians walk past the International Monetary Fund headquarters' complex in Washington Sunday, May 2, 2010. A senior International Monetary Fund official says the IMF's executive board is meeting in Washington to consider how much aid to grant Athens under a massive rescue loan package. (AP Photo/Cliff Owen)

Vastavam web: The International Monetary Fund has approved the third instalment of a USD 12 billion, three- year loan for Egypt, bringing the total released to date to just over USD 6 billion.The IMF board approved the latest USD 2 billion disbursement under the deal signed in November 2016, after a fund team last month praised Cairo’s progress on “bold” economic reforms.”The outlook is favourable, but will require sustained efforts to maintain prudent policies and advance structural reforms to support the authorities’ medium-term objective of inclusive growth and job creation,” said David Lipton, IMF first deputy managing director.

He said “reform of energy subsidies is critical for achieving the program’s fiscal objectives,” and to keep government debt on a downward trajectory.Since the 2011 revolt toppled former president Hosni Mubarak, the economy of the Arab world’s most populous country has received multiple shocks caused by political instability and security issues.