Egypt is reaching a staff-level agreement with the IMF that would help unlock the second tranche of a USD 12 bn loan to the Arab country, Invest-Gate reports.
The accord, subject to the approval of the IMF’s Executive Board, will allow Egypt to receive USD 1.25 bn. Egyptian officials have said that they expect to receive the funds in June, bringing total disbursements under the program to about USD 4 bn.
In a statement released on Friday, the Washington-based lender commends Egypt’s efforts to restore investor confidence in the economy. IMF officials said before the review that curbing inflation, which surged to more than 30% after the central bank floated the currency in November, should be the main priority of the next phase of reforms.
“The authorities see reducing inflation as a key priority for safeguarding the welfare of people across Egypt,” Chris Jarvis, the IMF mission chief, says in the statement. “We support the Central Bank of Egypt’s objective to bring down the inflation rate to single digits over the medium term consistent with its price stability mandate. We are confident that the central bank has the tools to achieve this,” he adds.