The International Monitory Fund (IMF) approved a 3-year $12b loan to Egypt on the November 11, reported Daily News Egypt. The loan payment will be over a 10-year period with an interest rate of 1-1.5%. Furthermore, Egypt has received the first $2.75b tranche of the loan of upon the IMF’s board approval. IMF’s approval of the loan came after the Egypt floated its local currency, EGP, and lifted some fuel subsidies, Bloomberg informed.
Egypt’s economic reform program was supported by the IMF as Managing Director, Christine Lagarde, stated that it is: “designed to revive growth and make sure it produces lasting changes and inclusive growth”. The IMF board added that the program will help Egypt restore its economic stability and promote inclusive growth.
As part of its effort to increase inflows, the government plans to issue $2b to $2.5b in international bonds in 2016. Additionally, Egypt Oil&Gas reported that Egypt reached a currency swap agreement with China valued at $2.7b, brining Egypt closer to achieving the conditions required to receive a $12b loan from the International Monetary Fund (IMF). An official with the Central Bank of Egypt (CBE) stated that the Egyptian-Chinese agreement is being processed by Chinese authorities.