IMF release of 2nd aid tranche shows confidence in Egypt's economy

The International Monetary Fund (IMF) agreement to release the second tranche of a 12-billion US dollar loan to Egypt, is a "vote of confidence" in the country's economic reform program, Governor of the Central Bank (CBE) of Egypt Tarek Amer said on Saturday.

The IMF approved a 12-billion dollar, three-year loan program to Egypt in November and has already paid out 2.75 billion dollars as the first tranche of the loan. The second tranche, 1.25 billion dollars, must still be endorsed by the IMF board following an "expert-level agreement" announced in an IMF statement on Friday.

"That move will lead to the increase of the flow of foreign and international investments into Egypt, which will help boost the development process," Amer was quoted by official news agency MENA as saying.

He hailed Friday's IMF statement as "important and confirms that Egypt is on the right track and will help attract foreign investments."