Egypt reaches 12bn aid package deal with the IMF

Abu Mubarik 11:44 - 11 August 2016

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The extended fund facility to Egypt includes the introduction of Value Added Tax (VAT) and spending cuts.

Egypt has reached an agreement with the International Monetary Fund for a 12 billion aid package over three years. The agreement is subject to the IMF board approval.

In a statement, the IMF Egypt mission head, Chris Jarvis, said: "the government recognises the need for quick implementation of economic reforms for Egypt to restore macroeconomic stability and to support strong, sustainable and job-rich growth."

"The program aims to improve the functioning of the foreign exchange markets, bring down the budget deficit and government debt, and to raise growth and create jobs,” he added.

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Africa's third largest economy has been struggling with it fiscal policies after the over of Hosni Mubarak in 2011, rising activities of terrorists which driving out tourists and lack of investment.

The government believes the deal with the IMF will improve confidence in the economy as well as fiscal discipline.