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Egypt clinches $3bn funding deal with IMF

Mohamed Maait, Egypt's finance minister, speaks during a Bloomberg Television interview in London, UK, on Monday, June 24, 2019 [Chris J. Ratcliffe/Bloomberg via Getty Images]
Mohamed Maait, Egypt's finance minister on June 24, 2019 [Chris J. Ratcliffe/Bloomberg via Getty Images]

Egypt announced, Thursday, a 3-billion-dollar agreement with the International Monetary Fund (IMF) to shore up its economy, Anadolu News Agency reports.

"The IMF's $3 billion loan is part of a $9 billion finance scheme that is expected to include $1 billion from the sustainability fund and $5 billion by the country's development partners," Finance Minister, Mohamed Maait, told a press conference in Cairo.

IMF Mission Chief for Egypt, Ivanna Vladkova Hollar, said the program aims to provide Egypt with balance of payments and budget support.

"Egypt's international and regional partners will play a critical role in facilitating the implementation of the authorities' policies and reforms, revealing that additional financing of about $5 billion is projected to be provided through multilateral and regional partners during current FY2022/2023, which ends in June 2023, which will help strengthen Egypt's external position," read a statement released by the IMF.

The move came shortly after Egypt's Central Bank hiked key interest rates in an unscheduled meeting by two per cent (200 bps).

On Thursday, the Egyptian currency slid by more than 14 per cent to reach 22.4 pounds against dollar.

READ: Egypt seeks new currency indicator to end dollar peg

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