The goal of Egypt’s new deal with the IMF is to reduce government debt.
A cabinet report released on Saturday said that the new $3 billion aid package from the International Monetary Fund (IMF) for Egypt aims to get the government debt down to less than 80% of the gross domestic product (GDP) in the medium term.
The fund didn’t require the Egyptian government to cut spending on subsidies, the report said, and the new program’s goal is to strengthen the social protection network for citizens.
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The IMF’s executive board has approved a 46-month, $3 billion aid plan for Egypt, saying that it will lead to about $14 billion more in funding.