Cairo, 5 February 2024 (TDI): IMF and Egypt have paved their way for an economic reform program. On Thursday, the International Monetary Fund agreed with Egypt on the key policy elements of an economic reform program. This indicates that the deal of 3 billion dollars between them is nearing completion.
According to Ivanna Vladkova Hollar, chief of the IMF mission in Egypt, both parties have made “excellent progress” in their negotiations. They have paved way for a comprehensive package of policies that might initiate long-overdue evaluations of the nation’s economic reform agenda.
In a statement, Chief Ivanna Hollar stated that the primary policy components of the program have been agreed upon by the IMF team and the Egyptian government.
Further, she stated that the authorities reaffirmed their strong commitment. They will be moving quickly on all key components of Egypt’s economic reform agenda.
Chief Hollar was on a two-week visit to Cairo and it came to its end on Thursday. Hollar stated that talks would continue virtually in the days ahead.
Most importantly, these talks would identify the magnitude of additional support from the IMF and other bilateral and multilateral development partners. Moreover, it was a need to help close Egypt’s increased financing gaps in the context of recent shocks.
Also Read: China and Egypt to strengthen bilateral relations
Additionally, IMF Managing Director, Kristalina Georgieva, stated earlier on Thursday as well. She briefed that talks to expand Egypt’s $3 billion package were nearing. They were making move for their “very last stretch” between the organization and the government.
Egypt’s economic reform program
Egypt and the IMF have been in discussions for the last two weeks. They were engaging over the renewal and expansion of the December 2022 loan deal. Loan payments from the IMF were halted last year after Egypt refused to allow the Egyptian pound to fluctuate in line with market conditions.
Instead, Egypt’s government has fixed it in March against the US dollar. Since then, the government has set Egyptian pound at at a fixed rate to the US dollar. But it has been traded on the black market.
