2023-09-17 08:48:03
Postponing the IMF’s review of the Egyptian economy to the first quarter of 2024
An Egyptian parliamentarian revealed that the International Monetary Fund’s first review of Egypt’s economic reform program, which was scheduled for September, has been postponed for the second time, and that it is now expected to take place in the first quarter of 2024.
The representative of the Planning and Budget Committee in the House of Representatives, Yasser Omar, said, according to the Arab World News Agency: “The first review by the International Monetary Fund experts this month will not take place due to the government’s postponement of the implementation of some of the commitments it agreed upon with the Fund during the last agreement.”
Last December, the Executive Board of the International Monetary Fund agreed to provide a loan to Egypt worth three billion dollars under a 46-month agreement.
Egypt received the first payment from the fund in December, worth $347 million, and the remaining payments were scheduled to be received following reviews conducted by the fund’s experts.
However, the implementation of the agreement was halted due to the Fund not conducting the first review of the economy in light of the Egyptian government’s refusal to take more stringent steps to adhere to a flexible exchange rate for the pound in view of the significant rise in inflation rates and fears of the economic and social repercussions of such a decision on citizens.
The representative of the Plan and Budget Committee in the House of Representatives said that the government will be able to implement all of its obligations to the International Monetary Fund, including the commitment to a flexible exchange rate for the pound once morest the dollar, in light of the steps it is taking and accelerating the tender program.
Earlier this year, Egyptian Prime Minister Mostafa Madbouly announced a list of 32 companies and banks that the government intends to offer to investors within a year. Finance Minister Mohamed Maait said that Egypt aims to achieve ten billion dollars in net foreign direct investments during the current fiscal year, compared to $8.6 billion in the previous fiscal year.
Omar indicated that he expects the fund to be reviewed during the first quarter of 2024, “as the Egyptian economy will be able to bear a new floatation of the pound.”
According to a document published by the IMF, the Fund’s experts conduct two annual reviews of the Egyptian economy until September 2026, with a total of eight reviews. The first review, on the basis of which the second tranche of the loan would be disbursed, was scheduled to take place last March.
Omar added that the Egyptian government only received the first tranche of the agreement, noting that the disbursement of the remaining tranches depends on the first review of the fund.
Egypt is suffering from an economic crisis due to the repercussions of the Russian-Ukrainian war and before that the Corona virus pandemic, which caused the exodus of more than 25 billion dollars from the country in less than one month, according to statements made by the Prime Minister during an economic conference held in October 2022.
The Egyptian pound has lost more than half its value once morest the dollar since March 2022, and inflation in the country recorded 37.4 percent on an annual basis in August.
The Egyptian pound is trading in the range of 38-40 pounds once morest the dollar in the parallel market, while its official rate is 30.95 pounds to the dollar, which has led to a significant decline over the past few months in remittances from Egyptians residing abroad, which constitute an important source of hard currency in Egypt. .
On the other hand, Hossam Haiba, CEO of the General Authority for Investment and Free Zones, and Jimmy Chiang, Assistant Director-General of the Hong Kong Investment Promotion Authority, signed a memorandum of understanding with the aim of encouraging increased investment movement between the two sides, and organizing the exchange of experiences and information.
It was agreed with the Investment Promotion Authority and the Hong Kong Chamber of Commerce to organize visits for representatives of financial and industrial companies headquartered in Hong Kong to Egypt, to inspect the investment opportunities available on the ground, and to learn regarding the incentive packages granted to projects operating in Egypt.
The memorandum of understanding was signed in the presence of Christopher Hui, Minister of Finance and Treasury of Hong Kong, on the sidelines of the activities of the eighth session of the Belt and Road Summit, which witnessed the presence of representatives of ministries and trade and investment promotion bodies in East Asia and the Arab region, and a number of companies interested in investing in the Middle East.
1694943962
#Kuwaits #Zain #raises #stake #UAEs #Task #Towers
