IMF 4th review of Egypt loan programme scheduled for Tuesday
This came during a press conference on Sunday in the presence of the Managing Director of the IMF Kristalina Georgieva.
Georgieva noted that Egypt's inflation reached 37 percent in 2023 but has decreased to between 25 percent and 26 percent.
She emphasized that Egypt is generating more job opportunities through the private sector, stressing that the IMF aims to support the prosperity of this sector to create enough job opportunities for the over million young people who enter the labour market yearly.
Additionally, Georgieva projected the GDP growth to reach 4.2 percent in FY2025.
She added that Egypt has enhanced social protection by gradually phasing out government subsidies, ensuring that any remaining support is directed to those who truly need it.
"We have been very open to adjusting the Egyptian program or any other program to best serve the people. However, let me say that we cannot do the work for the country and its people if we pretend that necessary actions can be overlooked, as doing so only increases the costs of these actions," Georgieva said in a virtual press briefing on the IMF's Global Policy Agenda.
In an interview with Ahram Online, she stated that the recent reforms announced a few weeks ago are expected to reduce borrowing costs by $1.2 billion annually due to changes in charges and surcharges.
She projected that these changes could decrease payments by approximately $800 million by the end of this decade.
Moreover, Georgieva outlined three priorities for Egypt by 2026: reducing inflation, decreasing debt, and creating conditions for increased growth.
In July, Egypt completed its third review with the IMF, which enabled it to access an $820 million tranche of the Extended Fund Facility (EFF) loan.
The upcoming review will grant the country access to a $1.3 billion tranche.
The third review marked a positive outcome, with Egypt showing improvements in macroeconomic indicators. The IMF also stressed the importance of maintaining a flexible foreign exchange rate, noting that debt is on a downward trajectory.
However, regional tensions and disruptions in the Red Sea continue to pose a threat to Egypt, adversely impacting the economy.