Egypt, IMF Reach Preliminary Agreement for $3 Billion Loan

The International Monetary Fund reached a preliminary agreement with the Egyptian government Thursday that paves the way for the economically troubled Arab nation to access a $3 billion loan, officials said Thursday, the Associated Press reported. IMF officials said that a staff agreement between the Egyptian government and IMF leaders had been reached following months of talks, as Egypt struggles to combat surging inflation caused, in part, by the war in Ukraine. In a statement issued Thursday, Egypt’s IMF mission chief Ivanna Vladkova Hollar said the 46-month deal — known as an Extended Fund Facility Arrangement — allows Egypt access to the $3 billion loan on the condition it implements a series of economic reforms. In the hours before the announcement, Egypt’s central bank announced a series of economic measures, including a rise in interest rates by 2 percentage points and a switch to a more “durably flexible exchange rate.” The bank said the exchange rate switch would now allow international markets to “determine the value of the Egyptian pound against other foreign currencies.” Read more.
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