20110606
presstv

The International Monetary Fund (IMF) has agreed to grant a loan of three billion dollars to Egypt to help the North African country's economy.


"Egypt announces the end of negotiations with the IMF and the clinching of an agreement with the fund to relaunch the Egyptian economy," AFP quoted Egypt's Finance Minister Samir Radwan as saying on Sunday.

Egypt's economy sustained a heavy blow during and after the revolution that overthrew former President Hosni Mubarak in January.

Many tourists and investors were scared away after anti-government protests broke out in February. Egypt's economy heavily relies on tourism. Egyptian officials say the country has lost $ 2.2 billion in tourism industry since February.

The IMF's decision comes a week after the Egyptian cabinet approved a draft budget for the 2011/12 financial year. The loan will help decrease a budget deficit of about $28 billion.

The IMF's acting managing director John Lipsky has praised the budget, saying it went “in the right direction of supporting economic recovery, generating jobs and assisting low income households, while maintaining macroeconomic stability.”

The new budget will increase spending by a quarter. Much of the increased spending will go to the low-income families.