Egypt Draws Final USD 2 bn Tranche of IMF Loan

Egypt Draws Final USD 2 bn Tranche of IMF Loan

Egypt has received USD 2 bn from the International Monetary Fund (IMF), drawing the sixth and final tranche of the USD 12 bn, three-year loan program that kicked off back in November 2016, Invest-Gate reports.

This last disbursement has been collected by the Central Bank of Egypt (CBE), which will principally boost the country’s foreign-exchange reserves to more than USD 46 bn, compared with the current USD 44.3 bn, Finance Minister Mohamed Maait said in an official statement on August 5.

“Thenceforth, Egypt will focus on promoting structural reform program, maintaining sustainable development, and fixing sectors to boost local industries in the coming period,” Maait explained.

He further stated that the North African country is still working on the reforms plan to offer more job opportunities and enhance the livelihood of Egyptians, besides promoting macroeconomic stability against internal and external risks, while achieving the state’s financial objectives.

The IMF’s executive board previously agreed to disburse the tranche in July, after a staff-level agreement has been reached in May. IMF Acting Managing Director David Lipton said in an earlier statement after the final review, “Egypt has successfully completed the three-year arrangement under the extended fund facility and achieved its main objectives.”

As part of the IMF deal, Egypt introduced the value-added tax (VAT), in addition to deep cuts to energy subsidies and a currency devaluation, putting the budgets of millions of Egyptians under strain. Such reforms were aimed at luring back investors, who withdrew funds from Egypt during and after the 2011 uprising.

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