The International Monetary Fund (IMF) confirmed that Egypt remains committed to continuing its economic reform program.
The IMF added in the experts’ report on Friday – issued within the first and second reviews under the fund’s extended facility with Egypt – that the country is committed to addressing the government resorting to overdraft facilities at the Central Bank and off-budget public sector activities.
The report added that Egypt is also committed to addressing weaknesses such as the central bank’s lending to public bodies.
Egypt has taken steps to tighten monetary policy, the IMF noted, alongside a shift to a flexible exchange rate system and a free exchange rate system, and increasing gasoline and fuel prices to compensate for adjustments missed since December 2022.
The IMF previously confirmed in a statement at the end of March that the fund’s Executive Board agreed to increase the loan program provided to Egypt by about five billion dollars to eight billion dollars, and that the increase allows Egypt to withdraw about US$820 million immediately.
