(MENAFN) In a recent expert report released on Friday, the International Monetary Fund (IMF) commended Egypt's dedication to addressing key financial issues, including the government's reliance on overdraft facilities from the central bank and off-budget activities within the public sector. This report follows the approval by the IMF's Executive Board on March 29 of an eight-billion-dollar financial support program for Egypt. Notably, Cairo has pledged to tackle weaknesses such as the central bank's lending to public entities, signaling a proactive approach towards fiscal reform and stabilization.
The IMF report highlights Egypt's proactive measures to tighten monetary policy and implement structural reforms. Among these efforts are the transition to a flexible exchange rate system and the adjustment of gasoline and fuel prices to offset previous imbalances dating back to December 2022. These steps reflect Egypt's commitment to addressing economic challenges and fostering sustainable growth.
Furthermore, the IMF noted the extension of financial support to Egypt, with the Executive Board approving an increase in the loan program by approximately five billion dollars last March. This augmentation underscores the IMF's confidence in Egypt's economic trajectory and its commitment to implementing necessary reforms.
In December 2022, Egypt and the International Monetary Fund finalized an agreement for an extended fund facility totaling USD3 billion over a period of 46 months. This agreement underscores the collaborative efforts between Egypt and the IMF to address economic vulnerabilities and promote financial stability. Overall, the IMF's report highlights Egypt's proactive stance in addressing fiscal challenges and its commitment to implementing necessary reforms to ensure sustained economic resilience and growth.
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