Afreximbak to lend Egypt $500 million to ease dollar crunch

Egypt is set to acquire a $500 million loan from the African Export-Import Bank (Afreximbank).

Egypt Is About To Solve Its #Currency Crisis By Borrowing $500m From afreximbank https://t.co/SBLfaAQFv6

— MMD Pegglobe (mmdbozz) February 21, 2016

The facility is to help Egyptian importers navigate the dollar shortage that has gripped the country.

The deal will provide a trade liquidity facility to Egyptian importers, focusing on imports considered strategic to the economy.

Egypt’s central bank reserves dwindled from some $36 billion before 2011 to $16.48 billion at the end of January this year.

The loan facility from the Afreximbank is part of a programme that was approved in December and is worth more than $ 3.5 billion.

It is aimed at helping member countries adjust to a collapse in commodity prices and the impact of political violence.

The north African country has struggled to revive its economy since the 2011 uprising.