The German government will provide a $250 million loan next year to help finance Egypt’s budget, the German Ambassador to Cairo, Julius Georg Luy, announced, according to Al Ahram Online.

While Egypt has been reducing its budget deficit, revenues will still fall short of expenditures this fiscal year. In fiscal year (FY) 2016/2017, Egypt’s deficit stood at 10.8% of GDP, down from 12.5% of GDP in FY 2015/2016.  

Under the terms of Egypt’s $12 billion loan from the IMF, the government is required to reduce its budget deficit.