IMF hails Egypt's commitment to structural reform
Tuesday، 11 August 2020 - 09:24 AM
The International Monetary Fund (IMF) issued on Monday August 10,2020 a report on Egypt's request to get a dlrs 5.2 billion financing package - which was approved by the end of June.
The 12-month Stand-by Arrangement for Egypt aims to help Egypt cope with challenges posed by the COVID-19 pandemic by providing fund resources to meet Egypt’s balance of payments needs and to finance the budget deficit.
The Fund-supported program would also help the Egyptian authorities preserve the achievements made over the past four years, support health and social spending to protect vulnerable groups, and
advance a set of key structural reforms to put Egypt on a strong footing for sustained recovery with higher and more inclusive growth and job creation over the medium term.
Egypt’s economic outlook was favorable. Real GDP was 5.6 percent (y/y) in the first half of FY2019/20. Public debt was on a downward trajectory, underpinned by a projected fiscal primary surplus of 2 percent of GDP.
At the end of February, gross international reserves stood at dlrs USD 45 billion.
Inflation had eased, with core inflation well anchored at 1.9 percent (y/y). The aggregate banking system was well capitalized, with ample liquidity, capital buffers,
and loan provisioning.
In addition, Egypt issued dlrs 2 billion in Eurobonds in November 2019 that included a 40-year tranche. The authorities remained committed at the highest levels to advance structural reforms to achieve more inclusive
private sector-led growth and jobs and reduce poverty and inequality.