Arab Republic of Egypt: Request for Extended Arrangement Under the Extended Fund Facility-Press Release; and Staff Report
IMF Staff Country Reports, January 10, 2023
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- Arab Republic of Egypt: Request for Extended Arrangement Under the Extended Fund Facility-Press Release; and Staff Report
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Bibliographic details
- Published: January 10, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400228469.002
Overview and program objective
- Paper highlights Arab Republic of Egypt’s Request for Extended Arrangement under the Extended Fund Facility (EFF).
- The authorities’ economic program supported by the 46-month EFF arrangement provides a credible policy package to:
- preserve macroeconomic stability,
- restore buffers,
- improve resilience against shocks,
- pave the way for private-sector-led and inclusive growth.
- The EFF is expected to catalyze additional financing from Egypt’s international and regional partners.
- Given heightened uncertainty and risks to the global economic outlook, the authorities’ commitment to stay the course on exchange rate flexibility, prudent macroeconomic policies, and structural reforms is critical.
Key policy measures and reforms
- Exchange rate policy:
- durable shift to a flexible exchange rate regime.
- Monetary policy:
- monetary policy aimed at gradually reducing inflation.
- Fiscal policy and social protection:
- fiscal consolidation to ensure downward public debt trajectory,
- enhancing social safety nets to protect the vulnerable.
- Structural reforms:
- wide-ranging structural reforms to reduce the state footprint,
- strengthen governance and transparency.
Expected outcomes and roles
- Program outcomes:
- reduce imbalances,
- maintain macroeconomic stability,
- restore buffers,
- pave the way for private-sector-led growth.
- Financing role:
- EFF arrangement expected to catalyze additional financing from international and regional partners.
Subjects and keywords
- Subject: Credit, Debt service, External debt, International organization, Monetary policy, Money, Public debt, Revenue administration
- Keywords: Credit, Debt service, EFF arrangement, financing gap, Global, GRA credit, long-term debt, policy distortion, policy package, policy transmission
International Monetary Fund. Middle East and Central Asia Dept. "Arab Republic of Egypt: Request for Extended Arrangement Under the Extended Fund Facility-Press Release; and Staff Report", IMF Staff Country Reports 2023, 002 (2023).
Content in this bundle
- 1egyea2023001