On November 11, 2016, following protracted negotiations, the International Monetary Fund (IMF) approved a loan of $12 billion to Egypt over three years, to help it undertake an ambitious reform plan that should enable it to overcome years of structural problems that burden its economy. The reform contains a list of basic components, including floating exchange rates, the imposition of value added tax (excluding defined food products and health services that benefit from an exemption), a reduction of energy-related subsidies, and concurrently, the creation of a social safety net to protect the weak strata. A sum of $2.75 billion, the first of four payments, was transferred to Egypt’s Central Bank immediately upon approval of the loan.
