Egypt IMF Loan Brings Short-Term Relief, But Uncertainties Lie Ahead

The IMF on 11 November finally approved a long-discussed $12bn loan for Egypt after Cairo the previous week fulfilled two key preconditions: devaluing the currency and hiking oil products prices.

But this is only the beginning of a long and difficult road, albeit one that Egypt had little choice but to take as aid from wealthy Gulf benefactors began to dry-up after two years of low oil prices.

Both the IMF and Cairo are, not surprisingly, bullish on Egypt’s prospects. The IMF says that reforms supported by its $12bn three-year Extended Fund Facility (EFF) “will help Egypt restore macroeconomic stability and promote inclusive growth. Policies supported by the program aim to correct external imbalances and restore competitiveness, place the budget deficit and public debt on a declining path, and boost growth and create jobs while protecting vulnerable groups.” (CONTINUED - 1177 WORDS)