IMF and Egypt to reach staff-level agreement “very soon”

IMF and Egypt to reach staff-level agreement “very soon”

IMF, International Monetary Fund, and Egypt come closer to signing a new loan to support Egypt’s plans for economic reform and mitigating the global economic challenges amid the Russia-Ukraine war.

Gerry Rice, Director of Communications and Spokesperson at the IMF issued a statement yesterday on Egypt regarding the in-person discussions held on the margins of the IMF and World Bank Annual Meetings. The statement read that “IMF staff and the Egyptian authorities have agreed to finalize their work to reach a Staff-Level Agreement very soon.”

The outcomes of the IMF-Egyptdiscussions came up with the following statements:

  • A continued fiscal consolidation path that will safeguard public debt sustainability and ensure a steady decline of the debt-to-GDP ratio over the medium term. Additional fiscal and related structural policies would further expand the social safety net for the most vulnerable, improve the budget composition, and enhance fiscal transparency.
  • Monetary and exchange rate policies that would anchor inflation expectations, improve monetary policy transmission, improve the functioning of the foreign exchange market, and bolster Egypt’s external resilience. This would enable Egypt to gradually and sustainably rebuild foreign reserves.
  • The implementation of the authorities’ comprehensive structural reform agenda would gradually enhance the competitiveness of the economy, reduce the role of the state in the economy, level the playing field for the private sector, improve the business climate, and foster transition towards a greener economy.

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