Hollar's remarks came in response to Ahram Online's questions about the time the IMF will complete the reviews of Egypt’s loan programme and the way the 46 month programme supports the macroeconomic performance of the country.
The IMF approved in December a 46-month loan for Egypt under the Fund’s Extended Fund Facility (EFF) to address the impacts of the Russian-Ukrainian conflict that caused an unprecedented inflationary wave.
The IMF will conduct a biannual review during the period of the programme, in March and September of each year, and disburse equal tranches accordingly.
Hollar also noted that the IMF-backed programme for Egypt aims to preserve the country’s macroeconomic stability, restore buffers, and pave the way for sustainable, inclusive, and private-sector-led growth.
According to Hollar, the programme mainly aims to shift to a flexible exchange rate regime. It also aims to transition away from subsidising lending schemes and to adopt fiscal consolidation and debt management to ensure downward trajectory in public-debt-to-GDP. The program also aims to contain gross financing needs and bridge the financing gap.
Hollar affirmed in this regard that the monetary policy adopted over the past years has obstructed the Egyptian economy and has decreased the levels of confidence in the country’s economy.
"These reforms will not be easy and the proposed structural reforms will take time to implement and deliver the planned results of reducing vulnerabilities to shocks and attaining stronger growth outlook”, Hollar stressed.
Hollar said that handing off the management of the low-interest initiatives from the CBE to the government aims to help Egypt’s monetary policy to focus on attaining better performance as a primary tool in containing the soaring inflation .
She also stressed that one of the aims of the program is to increase the role played by the private sector in the Egyptian economy. She cited Egypt's State Ownership Policy, which was released in its final form in December, and the key role it will play in this regard.
Hollar concluded by saying that the Egyptian government has committed to release an annual report tracking the progress in implementing this policy.