Washington, Dec 17:The International Monetary Fund (IMF) said it approved a funding arrangement worth $3 billion for Egypt.
“The IMF Executive Board approved a 46-month arrangement under the Extended Fund Facility (EFF) for Egypt in an amount of about US$3 billion,” the release said on Friday.
The package requires Egypt to implement a flexible exchange rate to increase resilience against external shocks and a monetary policy aimed at reducing inflation, the IMF said.
Cairo is also asked to increase social spending to boost the social safety net and “wide-ranging structural reforms to reduce the state footprint,” the release added.
The decision enables an immediate disbursement of SDR equivalent to about $347 million, according to the release.
The package is eventually expected to catalyze additional financing of about $14 billion from Egypt’s international and regional partners, including GCC states, the IMF said.
(UNI)
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