The International Monetary Fund (IMF) executive board has approved a 46-month $3 billion financial support package for Egypt, saying it will catalyze additional funding of about $14 billion, the fund said in a statement.
The package, Extended Fund Facility (EFF), includes a flexible exchange rate regime and enhanced social safety nets to protect the vulnerable, the statement said.
Agreement on the package was announced at the staff level on Oct. 27.
The agreement provides for an immediate disbursement of about $347 million to help support Egypt's balance of payments and its general budget, it added.
It is expected to catalyze additional financing of about $14 billion, including investments, from Egypt’s international and regional partners, the statement said.
The agreement includes a program of structural reforms that will "reduce the state footprint and level the playing field between the public and private sector." It also provides for upfront monetary policy tightening and fiscal consolidation.
