Message from International Monetary Fund to Egyptian Government

Kristalina Georgieva, Managing Director of the International Monetary Fund, said the authorities are in very good talks with the Egyptian authorities, who are taking appropriate steps.

Georgieva added during press statements that Egypt recently entered into an agreement with the International Finance Corporation to take advantage of its expertise to speed up the process of privatizing state-owned companies.

Egypt entered into an agreement with the International Monetary Fund to cooperate in implementing a 46-month program of economic reforms financed by the Fund in the amount of $3 billion in tranches for the duration of the program, as approved by the Fund’s Executive Board last December.

Despite this, the fund’s first review of the program was delayed after it was programmed last March amid signs of Egypt slowing down on some reforms, such as moving towards sustainable exchange rate flexibility and implementing a program to sell a number of assets to attract foreign inflows. currencies.

The Egyptian government is aiming to raise $2 billion through the sale of some of these assets by the end of June.

Georgieva stated that Egypt has taken many right steps, but it needs to assess the changing global environment and determine a way that will allow it to increase the competitiveness of its economy in 3 areas, in her words: “Firstly, the state must move away from activities that are not best to fulfill The Egyptian authorities absolutely understand that this is necessary to promote the prosperity of the private sector and create additional jobs, noting that this is very important for Egypt.

And she added: “Secondly, Egypt can do more to allocate support to the most vulnerable of the poor and reduce support that benefits the rich. I appreciate Egypt’s tremendous work in this area, but more remains to be done.” also emphasizing: “Thirdly, it is necessary to think about ways to increase Egypt’s foreign exchange reserves. We’ve been talking about it and I’m sure we’ll make progress,” as she warned that the first revision of the program is approaching. and aiming to complete it as soon as possible.

Egyptian President Abdel Fattah El-Sisi got excited live during the National Youth Conference when he spoke about the dollar and the floating exchange rate.

And the Egyptian President said: “We enjoy exchange rate flexibility, but when the issue affects the national security of Egypt and the Egyptians get lost in it, no, when the exchange rate affects the life of the Egyptians and can ruin them, we do not sit still, even if it contradicts conditions.” “Do you understand me”.

Source: RT + Bloomberg

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