IMF loan will enhance economic growth, social protection

The IMF is not requiring that the Egyptian government reduce social spending, the Cabinet’s Information and Decision Support Centre (IDSC) said in a statement.

The new loan will support the second phase of Egypt’s national economic and social reform programme, which aims to boost economic growth, encourage investments, stimulate exports, and create more job opportunities, the IDSC said.

The new loan also seeks to enhance the social protection and safety network and support macroeconomic stability in the face of the external shocks resulting from the current global crises, said the statement.

Late on Friday, the Executive Board of the IMF approved a $3 billion 46-month loan deal for Egypt under the Fund’s Extended Fund Facility (EFF) with an immediate disbursement of about $347 million as a first tranche.