RIYADH: After a staff-level agreement under the Extended Fund Facility, Egypt may be able to receive approximately $1.2 billion from the International Monetary Fund.
The deal, which must be approved by the IMF Executive Board, intends to give Egypt vital financial assistance while it negotiates a difficult economic environment. Egypt’s larger efforts to stabilize its economy in the face of high inflation and lower-than-expected revenues—including a drop in Suez Canal earnings—include the money.
“Despite ongoing regional tensions that are causing a sharp decline in Suez Canal receipts, the Egyptian authorities have continued to implement key policies to preserve macroeconomic stability,” stated Ivanna Vladkova Hollar, the head of the IMF mission to Egypt. Egyptian Foreign Minister Badr Abdelatty said last month that the country lost $8 billion due to a steep drop in Suez Canal income.
Along with guaranteeing long-term debt sustainability, the IMF and Egyptian authorities have decided to rebalance the nation’s fiscal consolidation trajectory, freeing up funds for vital social initiatives aimed at the middle class and disadvantaged populations.
Holler continued, “Special attention will be needed to enforce the strict implementation of the public investment ceiling, which includes capital expenditures associated with public entities that operate outside the general government budget, and to contain fiscal risks arising from state-owned enterprises in the energy sector.
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