IMF Rescues Egypt With $12 billion

In a move intended to restore investor confidence and raise Egypt’s foreign reserves, the IMF (International Monetary Fund) executive board has approved a three-year bailout to Egypt totaling $12 billion.


  • To qualify for the loan, the Egyptian government floated its currency and raised fuel prices

  • The above reform led to price hikes

  • The aim of the loan is to help Egypt “restore macroeconomic stability and promote inclusive growth.”

  • A first installment of $2.75 billion has arrived Egypt according to Tarek Amer (Head of Egypt’s Central Bank)

  • Egypt’s foreign reserve has now risen to to $23.5 billion due to the in flow.

  • Tourism, Investment and business activity has stalled for a while in Egypt with inflation hitting 14 percent and unemployment about 13 percent.


Egypt’s economy has been in shambles since 2011 after the ouster of President Hosni Mubarak, the IMF loan would come in handy as a last resort, after exhausting billions of dollars in aid from wealthy Gulf Arab nations recently humbled by declining oil prices — and now turned off by persistent bureaucratic hurdles to investing in Egypt.

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