IMF approves $12-billion loan to salvage Egypt’s economy
CAIRO, Egypt (AP): THE INTERNATIONAL Monetary Fund (IMF) said on Friday that its executive board has approved a three-year bailout totalling $12 billion to Egypt, to support the country’s ailing economy — a move intended to restore investor confidence and raise the country’s foreign reserves. Even with the loan, economic challenges remain ahead.
The approval comes almost a week after the Egyptian government floated its currency and raised fuel prices in order to qualify for the loan. These painful measures earned praise from the IMF and the international business community, but caused price hikes for an already frustrated cash-strapped population, with President AbdelFattah el-Sissi now risking a serious political backlash.