The International Monetary Fund (IMF) said on Thursday it had reached a staff-level agreement with Egypt for a $12 billion three-year funding facility to support a government reform program aimed at plugging a funding gap and rebalancing the currency market.
The deal is subject to approval by the IMF executive committee which is expected to consider Egypt's request for an Extended Fund Facility (EFF) in the coming weeks."Egypt is a strong country with great potential but it has some problems that need to be fixed urgently. The EFF supports the authorities' comprehensive economic reform program as stated in the government's plan approved by the parliament," Chris Jarvis, the head of the IMF mission in Cairo, said in a statement.
"The program aims to improve the functioning of the foreign exchange markets, bring down the budget deficit and government debt, and to raise growth and create jobs, especially for women and young people."
Egypt's economy has been struggling since a mass uprising in 2011 ushered in political instability that drove away tourists and foreign investors, both major earners of foreign currency. Foreign reserves have halved to about $15.5 billion since then.
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