A statement from the International Monetary Fund said $2.03 billion will be transferred to the Egyptian Ministry of Finance immediately after the International Monetary Fund Board approves the fifth and sixth reviews of the Enlargement Facilitation Program and new parts of the Resilience and Sustainability Program.
The International Monetary Fund has approved the fifth and sixth reviews within the framework of the Egyptian Economic Support Program, which will be expanded in 2024 and will allow the country to immediately receive approximately $2.3 billion.
Completing the fifth and sixth reviews will allow the government to immediately draw down approximately $2 billion at the same time the fund completes its first review of its resilience and sustainability program, giving the country approximately $273 million. The facility has a total value of $1.3 billion and will be paid in installments.
“Although macroeconomic stability has become more established, progress on structural reforms under the program has been uneven,” the fund said in a statement late Wednesday night after its board approved an interim agreement reached in December.
He added: “Efforts to reduce the role of the state have made slower than expected progress, particularly on the exit agenda and the public offering, while rising public debt and overall financing needs are limiting fiscal space and negatively impacting medium-term growth prospects.”
This approval, which came after repeated postponements related to observations about the pace of structural reforms, has implications beyond the direct financial aspects, as it is a certificate of international confidence in the reform process and a reassuring message to international markets regarding the stability of monetary and monetary policy.
The approval also opens the door to a more definitive phase of the government’s proposal file and deepening of structural reforms, especially after the abolition of the public works sector and the restructuring of supervision of Egyptian state-owned enterprises. With plans to transfer around 40 companies to sovereign funds and list around 20 on stock exchanges, Egypt is entering a new phase of expanding its ownership base, strengthening the role of the private sector and improving the efficiency of public assets.
Once these two reviews are completed, Egypt will have completed six reviews within the program, with two remaining reviews remaining in Egypt’s program with the Fund, which ends this year. This means that the next stage will test the sustainability of reforms and accelerate the pace of implementation of structural reforms.
According to a statement released by the International Monetary Fund, $2.03 billion is about to be sent to Egypt’s treasury shortly after the International Monetary Fund Board approved the fifth and sixth reviews of the Extended Fund Facility program and a new tranche from the Resilience and Sustainability Facility.
The International Monetary Fund has approved the fifth and sixth reviews as part of its program to extend support to the Egyptian economy in 2024, making approximately $2.3 billion immediately available to the country.
Completing the fifth and sixth reviews will provide the government with immediate access to approximately $2 billion, while the Fund has completed its first review of the Resilience and Sustainability Program, making approximately $273 million available to the country. The total cost of the facility is $1.3 billion, which will also be paid in installments.
“Although macroeconomic stability has become stronger, progress on structural reforms under the program has been uneven,” the fund said in a statement late Wednesday following the board’s approval of the interim agreement reached in December.
“Efforts to reduce the role of the state, particularly divestment plans and capital increases, have made slower-than-expected progress, while rising public debt and overall financing needs are constraining fiscal space and negatively impacting medium-term growth prospects,” it added.
The approval, which came after repeated delays related to concerns about the pace of structural reforms, has implications beyond the immediate fiscal aspect, as it is an international vote of confidence in the reform path and a reassuring message to international markets about the stability of monetary and fiscal policy.
The approval also opens the door to a more definitive phase of the government’s proposal file and deepening of structural reforms, especially after the abolition of the public works sector and the restructuring of supervision over Egyptian state-owned enterprises. With around 40 companies scheduled to be transferred to sovereign funds and 20 listed on stock exchanges, Egypt is entering a new phase of expanding its ownership base, strengthening the role of the private sector and improving the efficiency of public assets.
With the completion of these two reviews, Egypt has completed six reviews under the program, leaving only two reviews remaining in Egypt’s program under the Fund, which ends this year, meaning that the next steps will test the sustainability of the reforms and accelerate the pace of implementing structural reforms.
