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Egypt's first $4bn from IMF to be delivered in 2 installments

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Staff Writer | August 16, 2016
The $12 billion loan facility that the International Monetary Fund (IMF) has preliminarily agreed to provide for Egypt will be divided into three tranches, each worth $4 billion, the fund’s mission chief said.
Chris Jarvis
Africa   Chris Jarvis of IMF:
In an interview with Ahram Online after Egypt and IMF reached an initial financial deal last week, Chris Jarvis said that each tranche will be divided up into two installments, with an expected interest rate to be set at 1.5 percent.

According to Jarvis, the two installments will be worth $2.5 billion and $1.5 billion. However no details have yet been determined about the third tranche.

Egypt, which relies heavily on imports, particularly of foodstuffs, has been suffering a severe shortage of U.S. dollars in the wake of political and security unrest that has scared off tourists and foreign investors, two major sources of hard currency.

The Arab nation’s foreign reserves have more than halved since 2011 to reach $15.5 billion in July.