The International Monetary Fund has agreed to a $3 billion loan to Egypt. This money will help the country overcome a cash crunch and to boost salaries in the wake of the pro-democracy after its longtime president toppled. Egypt has been struggling with a $10 billion budget deficit from July. This one year loan will have an interest rate of 1.5 percent; and is waiting for the final approval from the IMF executive board.
?Following a revolution and during a challenging period of political transition, the Egyptian authorities have put in place a home-grown economic program with the overarching objective of promoting social justice,? Ratna Sahay, deputy director of IMF?s Middle East Department
The loan’s terms mark a departure from the more forceful conditions the IMF usually imposes in the form of austerity measures, such as increased taxes and lower subsidies. ?The announcement of the loan comes days after Egypt’s finance ministry published a draft of the country’s first post revolution budget.