The Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva announced on Tuesday that the IMF’s Executive Board is expected to approve the disbursement of additional funding worth US$1.3 billion within the Resilience and Sustainability program to Egypt.
She expressed her confidence in obtaining approval, showcasing the IMF’s commitment towards supporting the Egyptian economy.
“We are very comfortable with the reform package in Egypt,” she added, expressing her positive vision towards the country’s economic situation.
Georgieva’s statements came during a television interview on the sidelines of the Ninth Arab Public Finance Forum in Dubai.
“The amendments that were made came to reflect the difficult circumstances facing the country, but the basic objectives have not changed,” she explained.
“We, as management, are coming with a proposal in order to obtain a large share of the Resilience and Sustainability Program for Egypt. Our Board of Directors must give us the stamp of approval, and I am completely confident of that.”
Decline in Suez Canal’s revenues
Regarding the decline in Suez Canal revenues, Georgieva explained that this was the result of factors beyond Egypt’s control, which prompted the Fund to re-evaluate the reform path.
“We have re-evaluated the reform path to some extent. The goal remains the same, but how to achieve it is consistent with current circumstances,” she said.
“Egypt did not request a change in the reform objectives. What they requested was to make the implementation path consistent with changes in financial conditions. This confirms that it is still committed to its reform agenda, but it is working to adjust fiscal and monetary policies to ensure achieving the desired results without negatively affecting social and economic stability,” Georgieva added.
IMF to discuss fourth review
The spokesperson for the IMF Julie Kozack said on Friday that the IMF’s Executive Board is expected to discuss the fourth review of Egypt’s program in the coming weeks, noting that the meeting in the US capital, Washington, will be determined soon.
The Head of the Planning and Budget Committee in the House of Representatives and former IMF expert Fakhry al-Fiqi said that Egypt is eligible to obtain the “exceptional” financing for resilience and sustainability, which is directed to member states suffering from foreign exchange scarcity crises and is used to finance environmental and climate projects.
Fiqi said that the new financing has several advantages, including the easy interest and the long repayment period during the grace period.
He added that applying for it was expected for some time by the government.
Edited translation from Al-Masry Al-Youm
