- Egypt to Receive $1.25 Billion Loan from IMF
The International Monetary Fund, IMF, had perfect plan to grant Egypt a second instalment loan of $1.25 billion, according to state news agency MENA.
Africa’s third largest economy, Egypt, had approached the IMF for a three-year loan of $12 billion in November to further its ambitious economic reforms and ease the effect of fall in global commodity prices on its economy.
In an effort to meet IMF’s loan agreements, the government last week increased electricity tariff by 42 percent and hiked fuel costs by 50 percent.
Also, faced with surging inflation, the Egypt’s central bank raised interest rates by 200 basis points for the second policy meeting in a row.
A decision experts said would hurt new job creation and further escalate unemployment rate if not checked.
However, the IMF managing director Christine Lagarde in a show of support said “The government and the central bank have taken the right measures to rein in inflation, reduce the budget deficit, and set the Egyptian economy on a path to stability and growth.”