IMF lends  billion to Egypt to fund economic reform program

IMF lends $3 billion to Egypt to fund economic reform program

The International Monetary Fund (IMF) granted a loan of 3 billion dollars to Egypt to finance a program of economic reform, spread over four years, announced the information office of the Council of Ministers.

Under the terms of the agreement, Egypt could obtain two additional financings, including the first of $1 billion through the IMF’s new Resilience and Sustainability Fund, and the second of around $5 billion. dollars, through a number of international and regional institutions, the information office of the Council of Ministers said in a statement.

In addition to strengthening macroeconomic stability and the sustainability of public debt in the medium term, the Egyptian program aims to consolidate the social safety net and accelerate efforts to increase the competitiveness of the country’s economy, according to the same source.

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On the side of reforms and measures related to fiscal policy, the program aims to continue the fiscal discipline efforts represented in the pursuit of the achievement of an annual primary surplus of the public budget, and work to bring the public debt ratio gross domestic product (GDP) in the medium term to levels below 80% of GDP, in addition to continuing to lengthen the duration of public debt, diversify sources of financing and reduce financing needs, to achieve the balanced budget“said the same source.

The announcement of the agreement with the IMF came after the Central Bank of Egypt decided to raise interest rates by 200 basis points and adopt a flexible exchange rate of the pound against foreign currencies. foreign markets based on the mechanism of supply and demand in the market. This agreement will be presented to the IMF’s board of directors during the month of December for approval, according to the press release.

With MAP