The Clap
After much anticipation, the International Monetary Fund (IMF) has finally given the green light for Egypt to receive a $3 billion loan over the course of 46 months.
What
As part of the agreement, Egypt will receive an initial payment of $347 million to help shore up the budget & improve the balance of payments deficit.
The IMF praised Egypt’s commitment to a flexible currency exchange system, which it believes will help the country weather external shocks and avoid economic woes.
So what
The fund noted that this decision is likely to encourage Egypt’s international and regional partners to provide an additional $14 billion in funding, including through the sale of state-owned assets.
Now what
According to economic analyst Hany Genena, this agreement is a boost to the Egyptian Stock Exchange (EGX), as one of the conditions involves revving up the privatization program, which means more government companies will be up for grabs on the EGX.
