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 statement.
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.