The International Monetary Fund said - in a statement - that its Executive Board approved a financial support package for Egypt worth $ 3 billion for a period of 46 months, adding that it will stimulate additional financing by about $ 14 billion.
The statement said that the package includes a flexible exchange rate system and strengthening social safety nets to protect the vulnerable.
Egypt's finances, already suffering from high debt and a shortage of foreign currency, deteriorated sharply after Russia's war on Ukraine, prompting foreign investors to withdraw some $20 billion from the country in a matter of weeks.
Bankers in North Africa's largest economy say the gap between the Egyptian pound's black market rate of 32 to 33 to the dollar has widened in recent weeks from the official rate of 24.7 despite the currency's overall depreciation of 36 percent this year.
The agreement on the package was announced at the expert level on October 27, and the statement added that the agreement allows for the immediate disbursement of $347 million to Egypt to support Egypt's balance of payments and its general budget.
The statement said the agreement is expected to catalyze about $14 billion in additional financing, including investments, from Egypt's international and regional partners.
According to a report by the Egyptian Council of Ministers - published today, Saturday - that the new financial support package aims to reduce government debt to less than 80% of GDP in the medium term.
The agreement includes a program of wide-ranging structural reforms to "reduce the influence of the state and level the arena of competition between the public and private sectors." It also provides for tightening monetary policy in advance and consolidating public finances.