The International Monetary Fund (IMF) has approved a three-year extended arrangement under the Extended Fund Facility (EFF) for Egypt for about $12 billion to support the authorities’ economic reform programme.

The EFF-supported programme will help Egypt restore macroeconomic stability and promote inclusive growth. Policies supported by the programme aim to correct external imbalances and restore competitiveness, place the budget deficit and public debt on a declining path, boost growth and create jobs while protecting vulnerable groups.

The IMF Executive Board’s approval allows for an immediate purchase of $2.75 billion. The remaining amount will be phased over the duration of the programme, subject to five reviews.

Christine Lagarde, managing director and chair, IMF said: “The Egyptian authorities have developed a home-grown economic programme, which will be supported under the IMF’s Extended Fund Facility, to address longstanding challenges in the Egyptian economy.”

“These include a balance of payments problem manifested in an overvalued exchange rate, and foreign exchange shortages; large budget deficits that led to rising public debt; and low growth with high unemployment. The authorities recognize that resolute implementation of the policy package under the economic programme is essential to restore investor confidence, reduce inflation to single digits, rebuild international reserves, strengthen public finances, and encourage private sector-led growth,” she added. - TradeArabia News Service