Lagarde (L) meets with President Sisi (R)- File photo
CAIRO - 29 June 2017: Facing increasing and chronic economic troubles, Egypt’s authorities launched an ambitious reform program in November 2016 to reinstate macroeconomic stability and promote inclusive growth to revive an economy that has, since 2011, been hit by political instability and regional security concerns.
The economic reform program was supported by the International Monetary Fund (IMF), which approved a loan to Cairo after it applied a series of economic decision to reduce public spending such as raising fuel prices, electricity tariffs and introducing the value-added tax.
The IMF deal is crucial to the economy as it is deemed a sign of confidence in Egypt’s ability to achieve economic growth. It also helped improving the country’s credit rating and encouraging investments.
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