CAIRO: Egypt’s finance ministry is awaiting approval from the IMF’s executive board for the third review of the country’s economic reform program, scheduled for Monday.
The IMF is due to pay Egypt $820 million once the review is completed, and the government hopes that future reviews will remain successful.
Egypt’s Finance Minister Ahmed Kucuk said the government was strategically managing complex geopolitical factors to improve economic performance.
“We look forward to the IMF’s approval of the Third Review of the Economic Reform Programme and will pursue funding through the Resilience and Sustainability Fund to support the continued success of future reviews,” he said in a statement.
Kuszyuk’s comments came following a meeting with IMF Managing Director Kristalina Georgieva on the sidelines of the G20 meeting in Brazil.
The Minister reiterated the government’s determination to achieve fiscal discipline by reducing debt to gross domestic product.
“In addition, the government aims to create sufficient fiscal space to increase spending on education, health care and social security, lower inflation and stabilize prices, improve people’s living conditions, and support business competitiveness.”
Prime Minister Kuchuk stressed that increasing private sector investment and boosting production and export activities are the government’s priorities.
He said Egypt was working to simplify procedures within the customs system in order to rebuild trust between businesses and tax authorities and improve the quality of services for taxpayers.
Kuchouk said Egypt is also keen to promote structural reform and private investment in renewable energy, technology, desalination and infrastructure.
“The government ensures consistency in economic policy by setting limits on total public investment, government guarantees, and the public debt-to-GDP ratio.”
Georgieva reiterated the IMF’s commitment to continue close cooperation with Egypt.
“I look forward to the Board’s deliberations this Monday,” the IMF Managing Director wrote on social media.
Egyptian economic expert Medhat Nafi told Arab News: “The review was initially scheduled earlier but the board indicated that it needs to be postponed a little until Monday, July 29.”
“The reasons for the delay are unclear, but I suspect it may have something to do with Egypt’s previous commitments, particularly regarding the recent increase in fuel prices and the key measures requested by the fund.”
Nafi said disbursement of the new tranche of the IMF loan could be delayed “subject to further consultations and a careful assessment of the situation.”
The IMF has already recovered about $3.3 billion in debt and related interest, leaving only about $820 million to be paid to Egypt, he said.
