Egypt economy facing difficult challenges -- IMF

Egypt's economy is facing several "difficult challenges" that have to be addressed through an economic program, the International Monetary Fund (IMF) said here Wednesday.

IMF's Director of the Middle East and Central Asia Department Masood Ahmed, who visited Cairo for January 16-17 for discussions with the authorities and other stakeholders, said in a statement that "productive initial talks" were held with the authorities "on a possible IMF supported program to help stabilize Egypt's economy, restore confidence, lay the foundations for job creating growth and ensure that vulnerable households are protected during the transition." He added that "this initial visit will be followed by technical work during the coming weeks, both in Cairo and in Washington." "Egypt's economy, despite its solid and sound fundamentals, is facing a number of difficult challenges, which have to be addressed through an economic program that safeguards macroeconomic stability and creates conditions for a strong recovery," he stressed.

"The program developed by the Egyptian authorities and its key policies are currently being discussed with emerging political parties to ensure broad political support," he affirmed.

He stressed that "this should help reduce uncertainty and boost confidence in the program's successful implementation." Ahmed indicated that during the visit, the IMF mission also met with the economic committee of the Freedom and Justice Party and members of other parties and civil society represented in the Advisory Council of the SCAF. "These meetings provided us with a cross-section of views about Egypt's current economic and political situation, and possible avenues to address the challenges facing the economy," he noted.
He added "it also gave us an opportunity to explain the role the IMF could play in support of Egypt's historic transition."