01:36 p
Saturday, December 17, 2022
I wrote – Manal Al-Masry:
The International Monetary Fund said that the economic program of the Egyptian authorities supported by the “Extended Fund Facility” agreement aims to implement a comprehensive package of policies aimed at maintaining macroeconomic stability, restoring buffer reserves, and paving the way towards achieving sustainable and inclusive growth led by the private sector.
The International Monetary Fund (IMF) just announced the approval of its Executive Board for a 46-month cooperation program within the framework of the Extended Fund Facility (EFF) for Egypt in the amount of SDR 2,350.17 million (equivalent to 115.4 percent of the quota or regarding $3 billion), according to a statement from the IMF. Fund on Saturday.
Specifically, the fund stated that the package of policies included in the program includes 4 measures:
1- A permanent shift to a flexible exchange rate system to enhance resilience in the face of external shocks and to rebuild external protective reserves.
2- Implementing a monetary policy aimed at gradually reducing inflation rates in line with the objectives of the Central Bank, in addition to strengthening the mechanism for transmitting the effects of monetary policy, including by canceling subsidies for lending programs.
3- Fiscal control and debt management to ensure a decline in the public debt-to-GDP ratio and contain the total financing needs, while increasing social spending and strengthening the social safety net to protect vulnerable groups, and managing national investment projects in a way that achieves the sustainability of the external position and economic stability.
4- Large-scale structural reforms to reduce the state’s footprint, ensure fair competition among all economic entities, facilitate private sector-led growth, and enhance governance and transparency in the public sector.