When the third review of Egypt’s extended agreement was finished, the International Monetary Fund approved the payment of about $820 million to Egypt.
Following the detrimental economic effects of the Gaza situation on the African nation, the IMF authorized an enlarged $8 billion support program for it in March. Attacks by Yemen on ships operating in the Red Sea caused this to slow down tourism and cut Suez Canal earnings in half.
The agreement was reached under the Extended Fund Facility, a mechanism created to help nations with significant medium-term balance of payments challenges brought on by structural problems that take time to resolve. On December 16, 2022, the 46-month EFF agreement with Egypt was approved.
The international group claims that Egypt’s efforts to stabilize the economy have advanced noticeably. Although inflation is still high, it is progressively falling. According to an IMF news statement, the program’s core component is still a flexible exchange rate system.
Egypt’s macroeconomic circumstances have improved since the combined first and second evaluations in March. The lack of foreign currency has been eliminated, inflation is declining, and fiscal goals—including those pertaining to infrastructure spending—have been reached.
The IMF continued, “Investor confidence and private sector sentiment are starting to positively impact these improvements.”
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