IMF Staff Country Reports

Arab Republic of Egypt : First Review Under the Extended Arrangement Under the Extended Fund Facility and Requests for Waivers for Nonobservance and Applicability of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for the Arab Republic of Egypt

Author/Editor:

International Monetary Fund. Middle East and Central Asia Dept.

Publication Date:

September 26, 2017

Electronic Access:

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Summary:

The launch of Egypt’s reform program was a reversal from past policies, which had led to a buildup of large external and fiscal imbalances. With the liberalization of the foreign exchange (FX) market, the parallel market was eliminated and FX shortages virtually disappeared. The ongoing fuel subsidy reform, wage restraint, and significant revenue gains from the new value-added tax (VAT) underpin fiscal consolidation, which is critical for debt sustainability. Structural reforms to revive growth and employment are progressing well. The reform program received strong approval from the business community, international development partners and foreign investors.

Series:

Country Report No. 17/290

Subject:

Balance of payments statistics Debt sustainability analysis Egypt Exchange rate policy Extended arrangement reviews Extended Fund Facility Financial management Financial stability Fiscal policy Fiscal reforms Letters of Intent Monetary policy Performance criteria waivers