ABN - Egypt will receive a second loan instalment from the International Monetary Fund (IMF) worth US$1.25 billion, reported state news agency MENA.
The North African nation agreed a three-year, $12 billion loan programme with the global monetary body in November, provided it committed to a series of ambitious economic reforms including subsidy cuts and tax hikes.
The significant loan package was agreed to counter growing economic problems in the country such as rising unemployment and inflation, however economic progress has been made since the first instalment was distributed by the IMF.
Christine Lagarde, managing director of the IMF, said: “I would like to congratulate the people of Egypt and the authorities for their success in pursuing their ambitious economic reform programme.
“The approval by the IMF Executive Board of the First Review of the programme shows the IMF’s strong support for Egypt in these efforts.
“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.”