Positive IMF review paves way for $2B transfer to Egypt

The latest review by the International Monetary Fund has found that Egypt's economic reforms are on track, paving the way for the transfer of another $2 billion loan disbursement, part of a three-year, $12-billion bailout loan to support the country's battered economy.

The IMF said the transfer would bring the total payout to Egypt since it secured the loan in November 2016 to $6.08 billion. Egypt expects the payment to be made by January.

"Egypt's reform program is yielding encouraging results. The economy is showing welcome signs of stabilization," the Washington-based lender said in a statemen. It hailed the country's recovering GDP growth, the moderation of inflation and an increase in foreign reserves to more than $36 billion, their highest level since 2011. The IMF announced the completion of the review on Wednesday.

Egypt's inflation rate declined to 25.98 percent in November, the central bank announced earlier this month, down from 30.82 in October. President Abdel-Fattah el-Sissi, who masterminded the politically sensitive reforms, said in September that the government is targeting an inflation rate of 13 percent by the end of 2018.