The International Monetary Fund's executive board on Friday approved Egypt's request for a $12 billion loan facility, after the North African country met its requirements to implement tough measures to revive its floundering economy.

The first tranche of $2.7 billion can be disbursed immediately and will be added to the cash-strapped country's international reserves, the IMF said.

The bailout "will help Egypt restore macroeconomic stability and promote inclusive growth," the fund said.

Egypt in recent months has secured additional financing worth billions of dollars, floated its tightly managed currency and cut fuel subsidies, efforts that received strong support from IMF Managing Director Christine Lagarde.

Ms. Lagarde earlier this week said she would recommend that the boardapprove Egypt's request for financial assistance in support of its ambitious economic reform program that would help restore macroeconomic stability.

The country late last week floated the Egyptian pound and allowed it to substantially weaken against the U.S. dollar, while also raising the price of fuel. These moves are expected to increase the cost of living for ordinary people in the Arab world's most populous country.

Ian Talley contributed to this article.

Write to Nikhil Lohade at

(END) Dow Jones Newswires

November 11, 2016 13:55 ET (18:55 GMT)

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