The International Monetary Fund (IMF) expects to release the third tranche of its $12 billion loan to Egypt after the completion of a second review of Egypt’s compliance with the loan agreement later this year, the organization announced, according to Reuters.
The third installment is for approximately $2 billion.
In its first review released on September 26th, the IMF said that Egypt had made a “strong start” on its reform program, but that high inflation threatens macroeconomic stability, Egypt Oil & Gas reports. It noted that fiscal and regulatory reforms had improved Egypt’s financial and business climate.
Egypt’s inflation rate could fall to the low double digits, just over 10%, by next summer, according to the IMF Mission Chief for Egypt, Middle East, and Central Asia Department, Subir Lall, Reuters reports.