People read newspapers at a shop in Cairo. The IMF said Egypt’s economy is expected to grow 4.2 percent this year, well above initial estimates. (File photo: AP)
The International Monetary Fund on Wednesday approved the third instalment of a $12 billion, three-year loan for Egypt, bringing the total released to date to just over $6 billion.
The IMF board approved the latest $2 billion disbursement under the deal signed in November 2016, after a fund team last month praised Cairo’s progress on “bold” economic reforms.
In order to obtain IMF approval for the loan, the country has implemented a set of drastic reforms, adopting a value-added tax, cutting energy subsidies and floating its pound.
Since the 2011 revolt toppled former president Hosni Mubarak, the economy of the Arab world’s most populous country has received multiple shocks caused by political instability and security issues.
The IMF said Egypt’s economy is expected to grow 4.2 percent this year, well above initial estimates, while the inflation rate, which exceeded 33 percent in August, is declining and is expected to fall to 13 percent by the end of 2018.
