Egypt gets a fourth tranche of $ 2.02 billion from the IMF loan

by **RamblerNash** Sat Jun 30, 2018 10:10 am

Egypt gets a fourth tranche of $ 2.02 billion from the IMF loan

International Fund logo

30/06/2018

Economy News Baghdad

The International Monetary Fund (IMF) said it had approved a fourth tranche of $ 2.02 billion in a loan under the economic reform program.

Thus, the total amount received by Egypt from the Fund amounted to $ 8.06 billion under a 12 billion-year loan program for three years.

Under the IMF program, Egypt is undertaking economic reforms, including the liberalization of the exchange rate in November 2016, the reduction of fuel and electricity subsidies, tax increases and the introduction of investment-friendly legislation.

The IMF praised Egypt's economic measures, although ordinary Egyptians say they continue to suffer from low spending because of currency depreciation and rising electricity prices.

President Abdel Fattah al-Sisi's government this month announced a cut in fuel subsidies days after it announced it would raise electricity prices by 26 percent on average while drinking water prices would rise by about half.

Many economists hailed the financial cuts they said would help bring the Egyptian economy back on track after years of turmoil. Others argue that the implementation of many cuts at the same time could lead to an unexpected rise in inflation and reduce consumption and the reluctance of potential investors.

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