The IMF, loyal to its economic principles and strategy aims to make Egypt's currency more flexible, strengthen competitiveness, improve the availability of foreign exchange, promote exports and tourism, and attract foreign direct investment. It all depends whether the Egiptian government will follow through.
IMF answers 10 key questions about Egypt economic reform programme
Following The International Monetary Fund’s (IMF) Executive Board first review of Egypt’s economic reform programme, backed by the arrangement under the Extended Fund Facility (EFF) published on Thursday. Which will allow the authorities to receive the second loan tranche worth $1.2bn, of the $12bn loan approved in November 2016, IMF answered the main questions concerning Egypt’s economic reforms.
The EFF supports Egypt’s comprehensive economic reform programme, which aims to restore macroeconomic stability and return Egypt to strong and sustainable growth. The economic reform programme targets the improvement of the foreign exchange markets, bring down the budget deficit and government debt, as well as raising growth to create jobs, especially for women and youth, while protecting the most vulnerable groups in the society during the process of adjustment.
What is the amount of resources disbursed after the first program review on July 14, 2017?
Completion of the first review allows the disbursement of SDR 895.48 mn (about US$1.25 bn), bringing total disbursements under the program to about US$4 bn.
What are the social protection measures adopted so far to shield the most vulnerable?
The authorities have put in place several programs to help the most vulnerable people, through increasing the value of cash transfer allowances offered through food smart cards by more than 100%—from 21 to 50 Egyptian pounds per person—raising transfers for infant milk and children’s medicines ...
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