On Wednesday, the International Monetary Fund (IMF) approved a long-awaited loan for Egypt amounting to eight billion dollars, an increase from the previously discussed three billion dollars. The agreement was signed after a devaluation of the Egyptian pound to an unprecedented low of 49 pounds per dollar, down from approximately 30.85 pounds. Adopting a more flexible exchange rate is a key requirement in the IMF support program.
In a press conference, Egyptian Prime Minister Mostafa Madbouli stated that "the broader agreement includes a financing package valued at 20 billion dollars, distributed as eight billion dollars from the IMF, and 12 billion dollars from the World Bank and the European Union." He added, "We are working to increase foreign exchange resources and ensure the flow of foreign direct investments," in addition to "rationalizing and improving governance of spending in the upcoming period."
Madbouli mentioned that "the government aims to enhance partnership and bring the private sector back to be the largest contributor to the Egyptian economy," and he noted a plan to set a ceiling for total public investments at around one trillion pounds (approximately 1.272 billion dollars).
