CAIRO - 6 March 2024: Ambassadors of Italy, Canada, EU, France, Germany, Japan, UK, USA, welcomed the Staff-level Agreement reached between Egypt and the #MF staff in Cairo, the Embassy of Italy in Egypt stated on its official X platform account.
They described the agreement as an important step towards ensuring long-term economic stability, growth, and supporting Egypt’s reform efforts.
On Wednesday, the International Monetary Fund (IMF) and Egyptian authorities have achieved a staff-level agreement on a set of policies and reforms required to complete the first and second reviews under the Extended Fund Facility (EFF) arrangement.
The IMF loan has been augmented and increased to $8 billion instead of $3 billion "due to significant macroeconomic challenges that have become more complex to manage with the impact of the recent conflict in Gaza on tourism and Suez Canal receipts," according to the IMF statement.
"The authorities have demonstrated a strong commitment to promptly address all critical aspects of their economic reform program, which is supported by the IMF. Policy discussions and program reforms have focused on six pillars," said Ivanna Vladkova Hollar, the IMF mission Chief.
The six pillars of the reform program include transitioning towards a credible flexible exchange rate regime, implementing tighter monetary policy to reduce inflation and reverse dollarization, pursuing fiscal consolidation to maintain debt sustainability, slowing down infrastructure spending, ensuring sufficient social spending for vulnerable groups, and implementing reforms in state ownership policies to foster private sector growth.
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