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IMF loan to Egypt

The International Monetary Fund (IMF) approved the agreement, which includes the provision of a $3 billion loan to Egypt.

In a written statement from the IMF, it was stated that the loan in question represents a comprehensive policy package aimed at ensuring macroeconomic stability and paving the way for comprehensive private sector-led growth.

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In the statement, it was noted that the monetary policy to be implemented aims at a permanent transition to a flexible exchange rate system, increasing foreign exchange reserves and gradually reducing inflation in the country.

It was reported that the monetary policy in question, which will strengthen social safety nets to protect economically vulnerable groups, also includes financial control to reduce public debt.

In the IMF’s statement, it was pointed out that the 3 billion dollar loan with a maturity of 46 months “is expected to encourage more financing to Egypt from its international and regional partners”.

Egypt’s foreign exchange reserves fell from around $41 billion before the outbreak of the Russia-Ukraine war to $33 billion at the end of November.

 

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In Egypt, the fluctuations in the exchange rate in the local market have been reflected in inflation; The inflation rate, which was 16 percent in October, rose to 19 percent in November.

 

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