IMF gives provisional approval for $820 million payout to Egypt

The IMF and Egypt have agreed on a loan program review to disburse around $820 million to Cairo, AFP reports citing a statement from the multilateral lender.

The IMF said that its team had reached the agreement on the third review of an existing loan agreement, after a two week visit to the North African country. The deal, which needs to be approved by the IMF’s executive board, will provide Egypt with around $820 million as it continues with structural reforms to its economy.

These include increasing the role of the private sector, addressing high inflation and government debt, and moving a to a more flexible exchange rate, the IMF said.

IMF Egypt Mission Chief Ivanna Vladkova Hollar acknowledged the progress that Cairo has made: "These efforts are beginning to deliver an improved outlook, improved FX (foreign exchange) availability, inflation starting to slow down, and signs of recovery in private sector sentiment," she said in a statement.