IMF to lend Egypt 3 bln USD to support economic growth

Published: 06/06/2011 05:00



The International Monetary Fund (IMF)
announced Sunday that the IMF and Egypt have inked an agreement on a loan of 3
billion U.S. dollars to support the nation’s economic growth.

An IMF staff mission headed by Ratna
Sahay, deputy director of the Middle East and Central Asia Department, and the
Egyptian authorities have reached a staff level agreement on a Stand-By
Arrangement (SBA) in the amount of 3 billion U.S. dollars to support the
government’s economic program over 12 months for the fiscal year 2011-2012
starting from July, the Washington-based agency said in a statement.

“The draft budget for 2011-2012
enables additional spending for job creation and protection of the poor, while
limiting the widening of the deficit. Expenditures focus on human capital and
social investment, as well as labor intensive public works to encourage more
job-intensive growth,” Sahay said.

Egypt’s SBA request is expected to
be submitted to the IMF executive board for approval in July, noted the IMF.

“I welcome the commitment of the
Egyptian authorities to lasting change and structural reform at this historic
moment for the country. We are optimistic that the program’s objectives of
promoting social justice, fostering recovery, maintaining macro- economic
stability and generating jobs will bring positive results for the Egyptian
people,” John Lipksy, IMF’s acting managing director, said Sunday in another

Created in 1952, SBA is a
commonly-used lending instrument for IMF member economies who need financing to
help them overcome their balance of payments problems.


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