IMF will lend Egypt $12 billion
IMF will lend Egypt $12 billion, International Monetary Fund approved Friday a loan of $ 12 billion over three years to Egypt, which has pledged to implement a series of reforms, as amended agency Standard & Poor’s outlook for the future of Egypt’s debt from negative to stable
The IMF said in a statement late Friday that its Executive Board approved a loan to Egypt worth $ 12 billion three-year agreement to support the country’s economy.
They added that they would be allowed to give Egypt the first slice of the loan worth 2.75 billion dollars, to be distributed to the remaining duration of the program, which will undergo a five audits, while Egypt has pledged to implement in exchange for a series of economic reforms is popular.
On the other hand amended agency Standard & Poor’s credit rating outlook for future sovereign debt, Egypt, from negative to stable, but it kept classified “My negative” for the debt of foreign and local currency long-term and “B” in the short term.
And the agency said in a statement that the increase in inflation in Egypt in the near term due to the devaluation and the reduction of subsidies with raising interest rates will put pressure on domestic consumption and may cause social unrest.
And the agency made it clear that their ratings for Egypt is still restricted as a result of “fiscal deficit is large-scale, public debt, and high levels of low-income and fragile institutions and society,” while predicted that the Egyptian economy begins to grow again in 2018 and 2019 as a result of the inflow of investments and an increase in domestic consumption.