IMF working on defining date to send mission to Egypt: Fund managing director

Nevine Kamel from Marrakech, Thursday 12 Oct 2023

The Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva said on Thursday that the fund is working on defining a date to send a mission to Egypt to conduct a review of the four-year loan programme it signed with the country in December 2022.

IMF
 

In her first press conference during the IMF and World Bank meetings, held in Marrakech, Morocco 9-15 October, Georgieva noted: "Our discussions with the Egyptian authorities are focused on making sure that Egypt succeeds."

"We are currently in close engagement with the Egyptian authorities to define the challenges and ensure that Egypt can achieve progress," she added. 

“We have provided exceptional support to Egypt since the pandemic, starting with $8 billion and then the $3 billion under the current Extended Fund Facility,“ Georgieva told Ahram Online.
 
"Egypt has made good progress on a number of fronts, including fiscal policy, the implementation of the privatization strategy, and the engagement with our team on how to best conduct monetary policies in this hard time. Our discussions are focused now on making sure that Egypt succeeds. We are currently [defining] the challenges, to be sure that Egypt can make this progress and to set a date for a mission," she added.
 
Last month, Egypt said it had agreed with the IMF to merge the fund’s first and second reviews of its economic reform programme after the first review was continuously delayed amid questions over Cairo’s progress in meeting the IMF’s terms.
 
The IMF in December approved a $3 billion Extended Fund Facility loan for Egypt, which is under immense pressure to turn around its economic crisis, worsened by Russia’s invasion of Ukraine, and is experiencing its worst foreign-currency crunch and the highest inflation in years.

Under its loan agreement with the IMF, Egypt has adopted a flexible exchange rate system and is offering stakes in 35 state-owned companies to strategic investors through 2024.

The stakes programme has already collected $5 billion, with another $5 billion in deals in the pipeline.

“My respect to the Egyptian authorities, the governor of the central bank, and the minister of finance who are handling well very difficult challenges," Georgieva concluded.

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