The first installment of the loan, $2.75 billion, was immediately disbursed. Of late the relationship with Saudi Arabia has deteriorated, and Egypt has found itself cut off by its Saudi benefactor. Expected levels of revenue from an expansion of the Suez Canal have not materialized. In addition, remittances from Egyptian workers in the Persian Gulf have dropped. The monetary fund’s loan will... signal confidence in the government, making Egypt more attractive to foreign investors.