During a phone interview on the programme Hadrat Al-Mowaten presented by TV host Sayed Ali on Al-Hadath Al-Youm channel Saturday evening, El-Homsany said that the outcome of the meetings would be announced at the end of the negotiations with the IMF.
When asked if the negotiations were nearing completion, the government spokesperson urged against leaping to conclusions.
The IMF mission, led by Mission Chief for Egypt Ivanna Vladkova Hollar, is currently in Cairo for ongoing discussions on the first and second reviews of Egypt’s reform programme supported by the IMF’s Extended Fund Facility (EFF).
The IMF has not clarified whether the visit includes discussions on additional financing for Egypt.
In December 2022, the IMF approved a four-year $3 billion EFF loan programme for Egypt.
Since then, Egypt has not completed the programme’s first and second reviews, amid the ongoing challenges facing the country’s economy due to global and regional geopolitical tensions. This has delayed the disbursement of two more tranches of the loan that Egypt should have received in March and September 2023.
Under the EFF, Egypt committed to implementing flexible interest and exchange rate regimes, promoting private sector participation in the economy, and reducing debt and inflation levels to pre-pandemic figures by the programme's end.
Furthermore, Egypt committed to offering stakes in 35 state-owned companies to strategic investors by 2024.
By implementing these policies, the IMF believes Egypt will be able to bridge the $17 billion financing gap in the economy through 2026 and control inflation and debt levels.
On the other hand, Egypt is also discussing a $1 billion loan with the IMF under the fund’s Resilience and Sustainability Trust.
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