Egypt and the International Monetary Fund reached a preliminary deal that would likely unlock a further tranche of the North African nation’s $8 billion loan.
The staff-level agreement, announced on Tuesday by the IMF, puts Egypt on track for access to a disbursement of about $1.2 billion. It still needs to be signed off by the Washington-based lender’s executive board.
“Looking forward, reform priorities comprise boosting domestic revenues, improving the business environment, accelerating divestment, and leveling the playing field while enhancing governance and transparency,” the IMF said in its statement.
The accord was much anticipated after an IMF mission visited Cairo in November to discuss Egypt’s progress in implementing the 46-month programme — a keystone of a $57 billion global bailout for the Middle East’s most populous country.
The IMF deal seeks to restore macroeconomic stability in Egypt after a two-year financial crisis with moves including cutting government spending and raising revenue by offering state assets to investors while boosting the private sector.
Authorities let the pound weaken around 40% against the dollar and enacted three fuel-price hikes this year, while also increasing prices for electricity and subsidised bread.
