Egypt, IMF reach deal on policies and economic & structural reforms

Egypt has announced a deal with the International Monetary Fund (IMF) on policies and economic and structural reforms for the country’s new economic reform program, amid talks for a new loan program.

Egyptian authorities announced the success of technical meetings held between an Egyptian delegation and the director and experts of the IMF, saying the two sides reached agreement on policies and economic and structural reforms of the new Egyptian economic reform program, which will be supported by the International financial institution, the Egyptian finance ministry said in a statement.

The reforms according to the ministry include three main axes namely financial policy reforms and measures, monetary policy and structural reforms of the Egyptian economy.

Egypt also looks to continue disciplinary finance efforts by maintaining the first-year surplus in the general budget and working on restoring the track of government debt to the local product in decreasing to levels to less than 50% of Gross Domestic Product (GDP) in the medium term, the ministry indicated.

“On the side of monetary policy, we aim to continue efforts to control inflation rates and ensure stability of prices in the Egyptian market rapidly; We will also work on the efficiency of the followed monetary policy tools, maintain the solidity of the banking sector, as well as continue efforts to improve business efficiency,” the statement said.

In addition to structural measures and reforms, the North African country aims to work on taking a coherent and comprehensive set of measures that contribute to increasing the competitiveness of the Egyptian economy, improving the business environment, pushing productivity rates, export commodity and service rates, as well as promoting green activities and increasing the role and contribution of the private sector in the Egyptian economy and spur investments that contribute to high and sustainable economic growth rates, accompanied by the creation of sufficient and productive job opportunities for all those who want to work in the Egyptian market.

On October 15th, the IMF’s Director of Communications Gerry Rice revealed in a statement that Egyptian authorities and the staff of the IMF agreed to finalize their negotiations in preparation for reaching a staff-level agreement very soon.

The Arab country has begun talks with IMF since March for a new loan program to support its struggling economy hit by the brunt of the COVID-19 and Ukraine-Russia war. The talks according to Prime Minister Mostafa Madbouly are in the final stage.