IMF Approves Deal with Egypt for $3 Billion Support Package

The International Monetary Fund has approved a deal that will provide a $3 billion support package to cash-strapped Egypt over a period of almost four years, with the agreement expected to draw in an additional $14 billion in financing for the Middle East country, the Associated Press reported. The announcement from the IMF’s executive board late on Friday comes after a preliminary agreement was reached in October between Egypt and the fund. That initial deal came hours after Egypt’s central bank introduced a series of reforms, including a hike in key interest rates by roughly 2 percentage points. The Egyptian economy has been hard-hit by the coronavirus pandemic and the war in Ukraine, events that have played havoc with global markets and hiked oil and food prices worldwide. The Egyptian pound has lost 36% of its value against the dollar since March. Egypt is the world’s largest wheat importer, most of which came from Russia and Ukraine. The country’s supply is subject to price changes on the international market. Read more.
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