IMF approves $2 billion in funds to boost Egypt’s economy

The International Monetary Fund (IMF) said its executive board has completed the fifth review of Egypt’s $12 billion (Dh44bn) loan programme, allowing Cairo to draw another $2bn in funds to help boost North Africa's biggest economy.

The draw down represents the final instalment in a three-year loan programme agreed in 2016 to support Egypt’s economic reforms, the Washington-based lender said in a statement on Wednesday.

“Egypt has successfully completed the three-year arrangement under the Extended Fund Facility and achieved its main objectives,” David Lipton, IMF's acting managing director, said.

“The macroeconomic situation has improved markedly since 2016, supported by the authorities’ strong ownership of their reform programme and decisive upfront policy actions. Critical macroeconomic reforms have been successful in correcting large external and domestic imbalances, achieving macroeconomic stabilisation and a recovery in growth and employment, and putting public debt on a clearly declining trajectory.”

Egypt, the most populous Arab nation, also met its 2018-19 primary surplus target of 2 per cent of the country's gross domestic product, and the IMF noted the importance of maintaining primary surpluses over the medium term to keep public debt on a downward trajectory.