IMF relaxes conditions on USD8B Egypt support package, extends deadlines, adjusts reforms
Date
8/27/2024 5:47:37 AM
(MENAFN) The International Monetary Fund (IMF) has announced adjustments to its USD8 billion financial support package for Egypt, including extensions on certain deadlines and modifications to reform requirements. This revision comes as part of the third review of Egypt’s financial program with the IMF, following an increase in the size of the package earlier this year. The changes, which were approved in late July but made public only recently, reflect the Fund’s decision to ease several conditions initially set out in the agreement made in 2022.
Among the notable changes, the IMF has agreed to extend the deadline for the publication of annual audits conducted by Egypt’s Central Auditing Organization from March to the end of November. This extension allows time for amendments to the law that governs the organization’s operations. Additionally, the IMF has granted a delay for the central bank’s recapitalization plan, shifting the deadline from the end of April to the end of August. This extension aims to provide Egyptian authorities with adequate time to determine the necessary amount of new capital and develop a comprehensive strategy.
The IMF has also offered flexibility regarding Egypt’s fuel price reforms. Instead of enforcing quarterly price hikes, Egypt is now expected to commit to raising fuel prices to "cost recovery levels" by the end of 2025. This adjustment comes in light of recent developments, including a 15 percent increase in fuel prices by Egypt just before the IMF board’s rescheduled meeting on July 29. The IMF review emphasizes that aligning energy prices with cost recovery levels by December 2025 is crucial for ensuring a steady energy supply and addressing sectoral imbalances.
MENAFN27082024000045015682ID1108605010
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.