CAIRO (Reuters) – The International Monetary Fund’s (IMF) executive board has approved a 36-month $3 billion financial support package for Egypt, saying it would billion, the fund said in a statement. Strengthen social safety nets to protect vulnerable groups, the statement said.
Egypt’s finances, already saddled with high debt and lacking foreign exchange, deteriorated sharply after the Russian invasion of Ukraine, prompting foreign investors to withdraw about $20 A billion left the country in a matter of weeks.
The black market rate of the Egyptian pound between 24 and 32 is 100% between 24 and bankers in North Africa’s largest economy, says banker in North Africa’s largest economy. The gap between the official exchange rates per dollar has widened from the official exchange rate of 24 in recent weeks despite an overall depreciation of 36% this year.
In October 24 the agreement on the package was announced at the staff level.
The agreement provides for an immediate payment of approximately 347 million dollars to help support Egypt’s balance of payments and general budget, it added.
Expected to generate approximately USD in additional financing, including investments, from statement said Egypt’s international and regional partners.
The agreement includes a structural reform plan that will “reduce the country’s footprint and level the playing field between the public and private sectors.” It also provides for upfront monetary policy tightening and fiscal rectify.