Egypt has “Preliminary Agreement” on $4.8b IMF Loan

Photo Credit: France24

According to reports, Egypt and the IMF have reached preliminary terms on a loan worth $4.8 billion, and the IMF will vote on the proposal on December 19. Ahead of the agreement, Egypt has outlined a number of measures to reduce fuel subsidies and increase revenues, including raising sales tax that currently at 10 per cent. Additionally, the Justice Ministry has frozen the assets of former presidential candidate Ahmed Shafiq over corruption allegations. The assets of Shafiq’s daughters have also been frozen.

Meanwhile, Egyptian police and hundreds of protesters clashed in Cairo as demonstrators commemorated last year’s violence of Mohamed Mahmoud street. The protests entered a second day on Tuesday, and approximately 60 injuries have been reported. The protesters gathered near the Interior Ministry building, chanting “the people want the end to the regime,” and were met with teargas from police. BBC examines the legacy of the 2011 Mohamed Mahmoud clashes, saying they were distinct due to the ferocity of the police response, the use of excessive teargas, and the targeting of protesters’ eyes by police.