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IMF approves $1.25bn loan for Egypt

July 14, 2017 at 11:46 am

Poor living conditions can be seen in Luxor, Egypt on 14 July 2017 [Richard Messenger/Flickr]

The International Monetary Fund (IMF) announced this morning its approval to grant Egypt the second of $ 1.25 billion of a $12 billion loan.

In November 2016, Egypt accepted a three-year loan programme, linked to economic reforms, including reducing subsidies and increasing taxes.

Managing Director of the IMF, Christine Lagarde, congratulated the Egyptian people and the authorities for their “success in pursuing their ambitious economic reform programme. The approval by the IMF Executive Board of the First Review of the programme shows the IMF’s strong support for Egypt in these efforts.”

Read: Egypt to raise Metro prices by 100%

Lagarde also added:

I am very pleased that the government has taken and will continue to take measures to protect the poor and vulnerable groups, including through increasing social spending.

Last week, the government raised electricity prices by 42 per cent for the current fiscal year, a week after fuel prices rose by as much as 50 per cent, in an effort to meet the terms of its agreement with the IMF.