Egypt keen to bolster structural reforms, maximise role of private sector in economy: Sisi to IMF

Ahram Online , Monday 13 Feb 2023

Egypt is keen to continue enhancing its structural fiscal and monetary policy reforms and maximising the role of the private sector in the economy, President Abdel-Fattah El-Sisi told the Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva.

President Abdel-Fattah El-Sisi during his meeting with Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva.


The president's comments came during a meeting with Georgieva which was held on the sidelines of the World Government Summit (WGS) 2023 that kicked off in Dubai on Monday.

El-Sisi affirmed to Georgieva that enhancing fiscal and monetary policy reforms and maximising the role of the private sector should help secure a positive climate for all investors and global financial markets involved with the Egyptian economy, Presidential Spokesman Ahmed Fahmy said in a statement.

The president hailed the fruitful and constructive cooperation between the Egyptian government and the IMF to continue the implementation of the Egyptian comprehensive economic reform programme.

From her side, Georgieva praised the performance of the Egyptian economy and its resilience in the face of the negative impacts of the coronavirus pandemic and the Russia-Ukraine crisis.

This came as a result of the Egyptian state’s development vision under El-Sisi’s leadership that is improving the overall indicators of the Egyptian economy, Georgieva added.

She also stressed the IMF’s aspiration to maintain the special cooperation with Egypt and to support the country’s economic reforms.

The meeting reviewed the relations between Egypt and the IMF in light of the ongoing cooperation programme between the two sides to continue the path of Egyptian economic reforms, the spokesman added.

Egypt is currently engaged in an Extended Fund Facility programme that extends over 46 months, through which Egypt is to receive a total loan of $3 billion.

Egypt has already received one tranche and is expected to receive the second tranche in the deal by the end of March following the completion of the first review scheduled in mid-March.

Under the programme, Egypt has pledged to the IMF to unleash the potential of the private sector to play a greater role in the national economy and decrease the government footprint in the investment scene.

The country is also set to apply structural reforms that address the imbalances of the macroeconomic indices in order to bridge an expected $17 billion financing gap over the coming four years.

Meanwhile, in a separate meeting on Monday, Minister of Finance Mohamed Maait told Georgieva that Egypt is adopting an economic reform trajectory that contributes to supporting its financial discipline and decreasing debt to GDP ratio and budget deficit.

On Sunday, during the Seventh Arab Fiscal Forum in Dubai, Georgieva said Egypt is taking critical steps towards managing fiscal risks.

She added Egypt’s government is helping manage the many fiscal risks it is experiencing, including from public guarantees and losses by state-owned enterprises.

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