Egypt’s Cabinet, Central Bank discuss funding for strategic goods, production materials: PM

Amr Kandil , Sunday 4 Sep 2022

Recent meetings of the Egyptian Cabinet with new Governor of the Central Bank of Egypt (CBE) Hassan Abdallah focused on acquiring funding for strategic and basic goods as well as production materials for factories, Prime Minister Mostafa Madbouly said on Sunday.

Madbouly

 

Madbouly chaired the first meeting of the Coordinating Council for Monetary and Financial Policies to review the coordination and cooperation mechanisms between the government and the CBE.

During the meeting, Madbouly said the Cabinet is coordinating fully with the CBE on financial and monetary policies to address the current challenges, a Cabinet statement read.

The state is intensifying its efforts to confront the challenges posed by the coronavirus pandemic as well as the Russia-Ukraine crisis, Madbouly said.

Despite the existing challenges, the Egyptian economy managed to grow by 6.6 percent during the past fiscal year (2021/2022), the country’s highest growth rate over the past 14 years, the premier added.

Cabinet-IMF talks

The meeting also reviewed the government’s negotiations with the International Monetary Fund (IMF), the statement said without further elaboration.

Egypt and the IMF are in talks over a new loan, which can total $5-7 billion, according to Fakhri El-Fiqi, head of Egypt's House of Representatives' Budget Committee.

The new loan aims to back Egypt’s economic reforms and to meet the country’s financial needs in response to the global economic challenges amid the ongoing Russia-Ukraine war.

In August, Madbouly affirmed that the main priorities of the government are to guarantee the stability of the economy and reduce the negative impact of the global economic crisis.

The premier said late last month that the country is in the final arrangement stage with the IMF to conclude the new loan deal. Separately, he noted that details of the Cabinet talks with the IMF have to remain confidential until an agreement is reached.

The meeting also discussed steps that the finance ministry has taken to facilitate customs clearance of goods so as to release imported raw materials and finished products from Egyptian ports.

The officials also reviewed a set of incentives to attract investments from Egyptians abroad and foreign investors, which would contribute to supporting the economy, the Cabinet said.

Abdallah was appointed as governor of the CBE as per a presidential decree in mid-August, ending the seven-year-term of former governor Tarek Amer.

Short link: