The loan is part of a $12bn arrangement negotiated last year between the organisation and the country. 

The IMF board agreed on the loan after a review of Egypt’s economic reforms. It said in a statement that it “reaffirms the authorities’ commitment to their reform programme supported by the IMF.”

The country’s economy continues to perform well and the implemented reforms are paying off in terms of stabilising macroeconomics. 

Egypt's gross domestic product grew by 4.2% during fiscal year 2016/17, compared to the projected 3.5%. 

The IMF team leader Subir Lall said: “The government’s aim to achieve a primary surplus in the current fiscal year will help achieve Egypt’s program objective of putting government debt on a firmly downward trajectory over the medium term.

“This will reduce interest expenditures and create budgetary space for public infrastructure and well-targeted social spending.”

He added that the IMF supported the authorities’ plan to strengthen public financial management and fiscal transparency. 

At the beginning of this year, Egypt raised $4bn from its first public bond issuance since securing the $12bn aid from the IMF.