CAIRO (AP) — The International Monetary Fund has welcomed Egypt's economic reforms, saying it has made a good start at reining in public spending, boosting investor confidence, and addressing the surging inflation generated by the new policies.

In its first review since Egypt secured a $12 billion, three-year bailout loan in November, the IMF says Tuesday that Egypt's performance has been on track, allowing it to release a new $1.25 billion disbursement. That brings the total payout so far to $4 billion.

The Washington-based lender of last resort says energy subsidy reform, wage restraint, and a new value-added tax have all contributed to reducing the fiscal deficit and helped free up space for social spending to support the poor. Fighting inflation remains a priority, however.