The IMF agrees to disburse $347 million immediately to Egypt within the framework of the "Extended Facility" agreement.
The International Monetary Fund said in a statement, on Saturday, that the Fund’s Executive Board approved a 46-month “extended facility” worth $3 billion for Egypt.
The fund added, in a statement reported by Reuters, that the agreement allows for the immediate disbursement of $347 million to Egypt.
The statement said that it is expected that the agreement, which falls under the “Extended Fund Facility” (EFF) mechanism, will facilitate Egypt’s access to additional financing of about $14 billion from Egypt’s international and regional partners.
According to the IMF, the “Extended Fund Facility” (EFF) mechanism aims to assist member countries that experience large imbalances in payments due to structural impediments or suffer from slow growth and a fundamental weakness in the balance of payments position.
The Extended Fund Facility supports comprehensive programs, including policies, to correct structural imbalances over an extended period.