Egypt will receive a $2 billion fifth instalment from a three-year $12 billion loan package offered by the International Monetary Fund (IMF) in January, Reuters reported on Sunday quoting a statement from the President’s office.

The new tranche takes the total amount received by Egypt so far to around $10 billion.

The Arab region’s third biggest economy and most populous nation has been struggling to rebuild its economy following the upheavel resulting from the Arab Spring protests in January, 2011.

Egypt, which relies heavily on imports and is the world’s top importer of wheat, aims to decrease its soaring budget deficit to 8.4 percent of gross domestic product (GDP) in the 2018-19 fiscal year that runs from July 1, 2018 to June 30, 2019. The deficit stood at 9.8 percent in Egypt’s previous fiscal year.

Over the past three years, Egypt has implemented a number of austerity measures, including several subsidy cuts.

Egypt’s economy grew by 5.3 percent in its 2017/2018 fiscal year, which ended on June 30 this year, according to an IMF report released in October. It grew by 4.2 percent in the previous fiscal year. The IMF’s latest World Economic Outlook report issued in October predicted that Egypt’s economy would grow by 5.5 percent in the 2019 calendar year.

However, the Arab country, which relies on tourism as a main source of revenue, was hit by a bomb attack on Friday near its famous pyramids, resulting in the death of three Vietnamese tourists and an Egyptian tour guide, while at least 10 others were injured.

The attack was the first deadly incident against foreign tourists in over a year. Egyptian security forces responded by killing 40 suspected militants in three separate incidents in North Sinai and Giza, the Interior Ministry said on Saturday, Reuters reported.

Further Reading:
• Dana Gas gets $44mln payment from Egypt
• Kellogg Company signs long-term partnership agreement with the Egypt's Food Banking Regional Network
• UAE’s MBF Group eyes $2bn expansions across 5 countries including Egypt, mulls IPO
• Egypt names 23 state companies to float shares in privatisation scheme

(Compiled by Yasmine Saleh; Editing by Shane McGinley)
(yasmine.saleh@refinitiv.com)

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