IMF reaches staff level deal on Egypt loan instalment

CAIRO / Reuters

The International Monetary Fund said it had reached a staff-level agreement with Egypt on a second loan instalment that would make available about $1.25 billion. The IMF approved a $12-billion, three-year loan programme to Egypt in November and paid out $2.75 billion of the first $4 billion tranche of the loan.
An IMF team was in Cairo this week conducting a review of Egypt’s reform efforts to decide when the next $1.25 billion would be disbursed. In a statement at the end the IMF visit, team leader Chris Jarvis said: “The IMF staff team and the Egyptian authorities have reached a staff-level agreement on the first review of Egypt’s economic reform programme supported by the IMF’s $12 billion arrangement.
“The staff level agreement is
subject to approval by the IMF’s Executive Board.” Jarvis said completion of the review would make about $1.25 billion available to Egypt, bringing total disbursements under the programme to about $4 billion. There was no immediate comment from the Egyptian government.
The floating of the Egyptian currency last November, as well as the introduction of a value added tax and reform of energy subsidies had all had significant effects, it said. Foreign exchange shortages are resolved and interbank market activity is recovering, the IMF said.