IMF to approve $2bn additional payment to Egypt

The International Monetary Fund says it was to approve the payment of a further $2bn of a $12bn loan to Egypt as the country undertakes tough economic reforms.

The upcoming payment, after a third review of the fiscal reforms agreed in late 2016 which included a flotation of the pound currency that hit many Egyptians hard, would bring the total amount paid so far to $8bn, a statement by the Fund indicated.

“Egypt has begun to reap the benefits of its ambitious and politically difficult economic reform programme,” the IMF statement said, citing accelerating growth and a declining current account deficit as reasons for the decision to make another payment.

“Annual headline inflation has declined from 33 per cent in mid-2016 to around 13 per cent in April,” it said.

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