Egypt received today the final installment of the first $4 billion tranche of the $12 billion International Monetary Fund (IMF) loan, the state-run Middle East News Agency (MENA) reported.
An official source at the Central Bank of Egypt (CBE), said that the second batch “will boost the bank’s foreign currency reserves.”
Egypt’s net foreign reserves slightly rose by five per cent late June, reaching $31.305 billion, compared to $31.125 billion in May.
On Friday, the IMF’s executive board approved the first review of Egypt’s loan and has accordingly proceeded the disbursal of the final installment of the first loan tranche, according to an IMF said statement. So far, Egypt has received a total of $4 billion of funds from the IMF loan.
The review included an assessment of the implementation of Egypt’s reform program since 2014, which includes cutting subsidies and government expenditure while implementing new taxes.
In mid-August 2016, Egypt reached an agreement with the IMF over a three-year $12 billion loan to endorse the country’s fiscal reform programme, which the government embarked on in 2014 in an attempt to curb the growing state budget deficit.
On 11 November, Egypt received the first funding installment worth $2.75 billion following the floating of the Egyptian pound.
Egypt is expected to receive the third loan installment worth $2 billion between December and January following the next review scheduled between November and December, according to the finance minister, Amr El-Garhy.