WASHINGTON: The International Monetary Fund said on Tuesday that it has reached a deal with Egyptian authorities allowing the country access to about $1.2 billion.

The funding access is subject to executive board approval.

`The Egyptian authorities have continued to implement key policies to preserve macroeconomic stability, despite ongoing regionaltensions that are causing a sharp decline in Suez Canal receipts, said Ivanna Vladkova Hollar, who led the IMF mission involved in discussions with Egyptian authorities.

She added in a statement that `continued implementation of fiscal consolidation efforts will be necessary to preserve debt sustainability, and reduce large interest costs and gross domestic financingrequirements.` The deal comes as both sides reached staff-level agreement on the fourth review under the Extended Fund Facility arrangement, the fund said.

Vladkova Hollar also noted that authorities` plans to streamline and simplify the tax system were commendable, but that `further reforms will be needed to enhance domestic revenue mobilization efforts.`-AFP