Egypt Reaches IMF Loan Agreement for Up to $4.8 Billion

By Mariam Fam, Abdel Latif Wahba and Ahmed A. Namatalla

Bloomberg Business Week
November 20, 2012

Egypt reached a preliminary agreement with an International Monetary Fund team for a loan of as much as $4.8 billion that officials say is necessary to support the ailing economy and attract more funding. 

The “22-month standby arrangement” for the loan, which will carry an interest rate of about 1.06 percent, will be distributed in eight quarterly tranches if it is approved by the IMF’s board, Andreas Bauer, who headed the fund’s technical team to the country, told reporters today. Planning Minister

Ashraf el-Arabi said the board will review the agreement next month.
Since last year’s uprising that ousted Hosni Mubarak, the economy of the Arab world’s most populous country has been battered. Foreign reserves have plunged by more than 50 percent while protests and unrest have stunted productivity and cut key revenue sources such as foreign investment and tourism.

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