On Wednesday, the IMF announced the conclusion of the two-week in-person discussions of its mission to the country led by Ivanna Vladkova Hollar with Egyptian authorities in Cairo regarding the fourth review of Egypt's $8 billion EFF programme.

“Kristalina Georgieva, the managing director of the IMF, had a very constructive visit to Egypt that underscored the fund’s support for Egypt’s resilience and efforts to maintain its economic stability. This visit came amid many regional tensions, which affects Egypt’s economic growth opportunities; however, the relevant authorities have implemented key reforms to preserve the macroeconomic stability,” Kozack told Ahram Online.

Given these challenges, the IMF increased its support for Egypt under the programme by raising the loan amount from $3 to $8 billion in March. She explained that the IMF has recently reformed its policy strategy, saving Egypt $800 million over the next six years.

Kozack also highlighted that the Fund is also engaged in discussions regarding Egypt’s request to secure a loan of $1.2 billion under the Fund’s Resilience and Sustainability Facility (RSF) without giving further details.

Regarding the key reforms of priority under the fourth review, Kozack said that they include sustaining a flexible exchange rate to shield the economy from external shocks, maintaining the monetary policy tightening to help contain inflation pressures, keeping solid fiscal discipline, enhancing the private sector growth, and accelerating the divestment plan to speed up reforms to level the playing field and reduce the footprint of the state in the economy.

“Reforms also will focus on enhancing tax equity, broadening the tax base, reducing tax exemptions rather than increasing tax rates, and saving sufficient revenues for the essential social programmes, namely, for healthcare, education, and social safety nets to protect the vulnerable groups from the rising costs of living and the hikes of prices of fuel products,” Kozack further noted.