The World Bank and the European Union will provide soft loans to Egypt after signing the agreement with the IMF, according to Madbouly
Egypt signed an agreement with the International Monetary Fund (IMF) to raise its current $3 billion deal to $8 billion. Prime Minister Mostafa Madbouly announced the signing of the agreement between Egypt and the IMF during a press conference on Wednesday.
The World Bank and the European Union will provide soft loans to Egypt after signing the agreement with the IMF, according to Madbouly.
The objectives of Egypt's program with the IMF are to increase foreign currency reserves, reduce inflation, local and foreign debt, ensure a significant influx of foreign direct investment in the coming period, target a high economic growth rate, create job opportunities for the youth and enhance social protection programs.
IMF's mission chief, Ivanna Vladkova Hollar, stated that Egypt has taken correct measures to improve its economy. Hollar also applauded Egypt on its efforts to attract foreign investments & provides many social protection programs to elevate citizens' living standard.
The announcement came hours after the Central Bank of Egypt’s decision to float the Egyptian pound (EGP) and raise the interest rates by 600 basis points. The CBE raised the overnight deposit rate, the overnight lending rate, and the rate of the main operation by 600 basis points to reach 27.25%, 28.25%, and 27.75%, respectively. Additionally, the discount rate has been raised by 600 basis points to 27.75%.
