IMF’s executive board approved the 46-month arrangement under the Extended Fund Facility (EFF) worth $3 billion. This decision enables an immediate disbursement of about $347 million “which will help meet the balance of payments need and provide support to the budget,” according to the IMF statement.

Egypt will catalyze additional financing of about $14 billion from international and regional partners, including new financing from GCC countries and other partners, the fund said.

“A permanent shift to a flexible exchange rate regime will help mitigate external shocks and prevent imbalances from re-emerging and allow monetary policy to focus on maintaining price stability. Fiscal consolidation will ensure medium-term debt sustainability, while expansion of social spending will help alleviate poverty and protect the vulnerable. Structural reforms will reduce the state footprint and level the playing field between the public and private sectors, strengthen private-sector-led growth, and enhance governance and transparency,” Kristalina Georgieva, Managing Director and Chairman of the Board at IMF, said in the press statement.

Almost a month ago, Egypt has devalued its currency with the USD now ranging between 24 to 25 EGP.