A delegation from the International Monetary Fund (IMF) is currently visiting Egypt since 19 January to discuss the first and second reviews of the country’s USD 3 billion (EGP 92.4 billion) loan and reform program, according to a spokesperson statement to Reuters.
The multilateral lender did not clarify whether the visit includes discussions on providing additional financing for Egypt.
The team, led by IMF Egypt Mission Chief Vladkova Hollar, will work with Egyptian officials to finalise a timeframe for the stalled reviews.
As a part of the discussion, the IMF team are working with the Egyptian authorities to finalize a set of policies that would enable the completion of the first and second reviews of the loan program, as per a statement from the Fund’s spokesperson to Ahram Online on 20 January.
WHAT IS REQUIRED FOR THE REVIEW TO HAPPEN?
Since securing approval for the USD 3 billion reform program in December 2022, Egypt has faced delays in implementing the necessary policies for the first and second reviews due to ongoing macroeconomic challenges, further exacerbated by global and regional geopolitical tensions.
As a result, the disbursement of two additional tranches of the loan, initially expected in March and September 2023, remains postponed.
Under the loan agreement, Egypt committed to implementing flexible interest and exchange rate regimes, privatising several state-dominated economic sectors, and reducing debt and inflation levels to pre-pandemic figures by the end of the program.
In a bid to revive its private sector, Egypt’s government announced it will offer stakes in 35 state-owned companies to strategic investors by 2024.
The outcomes of the visit will be disclosed after its conclusion.
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