Upon ending the ongoing loan deal with the International Monetary Funding (IMF) next year, Egypt will not be requesting further funding as per a Boomberg interview with Egypt’s Finance Minister Mohamed Mait. “We are now in a position where we do not think we’ll need further funding from the IMF,” Mait told Bloomberg. “We are committed to further reforming to our economy and making our economic reform model a good example for other countries.” A three-year US$ 12 billion loan programme was secured by Egypt in 2016 following a radical economic decision early in the year. Egypt’s central bank floated the local currency in a surprise move early in 2016, “moving to a liberalized exchange rate regime in order to quell any distortions in the domestic foreign currency market.” The move was aided by the fund which also enabled a reduction of energy subsidies, fuel subsidies and the imposition of new taxes. The decision was brought on by multiple years in which Egypt suffered from political instability which affected its foreign currency and investments. Although the Egyptian government economic reform program has been met with local criticism and resistance, the IMF …
No Additional Post-Loan Funding from IMF: Egypt’s Finance Minister
November 29, 2018
