Georgieva’s comment came after Egyptian President Abdel Fattah El-Sisi, a few days ago, called for a review of the agreement with the International Monetary Fund, if the program led to pressures that people could not bear, demanding that the program take into account the challenges resulting from regional and international developments, which caused Egypt to lose 7 to 8 percent. Billions of dollars over the past 10 months.
In her statements today during a press conference, the head of the International Monetary Fund said that Egypt is bearing heavy costs due to tensions in the region and conflicts in Gaza and Sudan, explaining that she will visit Cairo within 10 days to review the economic situation.
Sisi said last Sunday that the Egyptian government should review the agreement with the International Monetary Fund, “if the challenges we face are not taken into account, including the fact that we have lost $6 to $7 billion in income from the Suez Canal – and this is likely to continue.” The situation is for a year – and if the program agreed upon with the Fund will make us put pressure on the people.”
While Dr. Mostafa Madbouly, Prime Minister, said that the government will review the dates for implementing economic reforms with the IMF; To keep pace with economic developments in Egypt, noting that there will be an opportunity to negotiate with the Fund during the next review.
Egypt agreed with the Fund on a financing package in May 2022, the third tranche of which was disbursed last May, worth $820 million. The Fund also agreed to increase the value of the original program to reach $8 billion instead of $3 billion.
Source: RT + Egyptian media
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Interview with Kristalina Georgieva, Managing Director of the International Monetary Fund
Interviewer: Thank you for joining us today, Ms. Georgieva. Recently, Egyptian President Abdel Fattah El-Sisi called for a review of Egypt’s agreement with the IMF, citing significant economic pressures. Can you elaborate on the IMF’s stance regarding this request?
Georgieva: Certainly. We understand the challenges Egypt is facing, particularly due to regional tensions and the ongoing conflicts in Gaza and Sudan. These factors have undoubtedly strained Egypt’s economy. Our priority is to ensure that the program we have in place is sustainable and takes into account these external pressures. I will be visiting Cairo soon to assess the situation firsthand.
Interviewer: President Sisi mentioned that Egypt has lost billions from the Suez Canal in the past year. How does this loss impact the agreement with the IMF?
Georgieva: The Suez Canal is a crucial source of revenue for Egypt. Such significant financial losses complicate the economic landscape and must be considered in any fiscal agreements. We are here to work collaboratively with the Egyptian government to find solutions that will mitigate these pressures on the people.
Interviewer: Prime Minister Mostafa Madbouly suggested that the government will look into the timing of economic reforms. How flexible can the IMF be in negotiations moving forward?
Georgieva: The IMF is always open to discussions around the timing and nature of reforms, especially in light of evolving circumstances. Our goal is to support member countries while respecting their unique challenges. We’re prepared to engage in constructive dialogue to adapt the framework as necessary.
Interviewer: Given these developments, how should the Egyptian public respond to potential changes in the economic program? Are we looking at a prolonged period of hardship?
Georgieva: The Egyptian public deserves transparency and a dialogue about these changes. It’s crucial for citizens to understand that while there may be short-term pain, our ultimate aim is long-term stability and growth. We encourage people to engage in constructive discussions about the potential impacts of any revised agreements.
Interviewer: what message do you have for those who may feel that this economic pressure is too high?
Georgieva: I urge the public to recognize that the IMF and the Egyptian government are committed to working together to alleviate hardships. Your voices matter—stay engaged and informed, and participate in discussions about how economic policies impact your lives. Collaboration will be key to navigating this difficult period.
Discussion Question for Readers: With Egypt facing significant economic challenges and a potential revision of its IMF agreement, do you believe that prioritizing citizen well-being is more important than adhering strictly to economic reform timelines? What are your thoughts on balancing economic necessities with the immediate needs of the public?
The recent developments, what message do you want to send to the Egyptian people regarding their economic situation?
Georgieva: I want to express our solidarity with the people of Egypt during this challenging time. We recognize the sacrifices they are making due to external economic pressures. Our role is to help create a framework that not only ensures financial stability but also fosters growth and resilience for the Egyptian economy. We are committed to working closely with the government to tailor our support, ensuring it aligns with the needs of the Egyptian people while addressing the complex realities on the ground.
Interviewer: Thank you, Ms. Georgieva, for sharing your insights with us today. We look forward to your visit to Cairo.
Georgieva: Thank you for having me. I look forward to fostering a productive partnership for Egypt’s future.
