Arab Republic of Egypt: First and Second Reviews Under the Extended Arrangement Under the Extended Fund Facility, Monetary Policy Consultation, and Requests for Waiver of Nonobservance of a Performance Criterion, and Augmentation and Rephasing of Access-Press Release; and Staff Report
IMF Staff Country Reports, April 26, 2024
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- Arab Republic of Egypt: First and Second Reviews Under the Extended Arrangement Under the Extended Fund Facility, Monetary Policy Consultation, and Requests for Waiver of Nonobservance of a Performance Criterion, and Augmentation and Rephasing of Access-Press Release; and Staff Report
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Bibliographic details
- Published: April 26, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400273964.002
Summary and Key Findings
- Presents Egypt’s First and Second Reviews under the Extended Arrangement under the Extended Fund Facility (EFF), Monetary Policy Consultation, and Requests for Waiver of Nonobservance of a Performance Criterion, and Augmentation and Rephasing of Access.
- A strong economic stabilization plan is being implemented to correct policy slippages.
- The plan is centered on:
- a liberalized foreign exchange system in the context of a flexible exchange rate regime,
- a significant tightening of the policy mix,
- reducing public investment,
- leveling the playing field to allow the private sector to become the engine of growth.
- The recent sizable investment deal in Ras El-Hekma alleviates the near-term financing pressures.
- Implementation of the economic policies under the program remains critical to address Egypt’s macroeconomic challenges.
- Robust delivery on structural reforms will be critical to lock in the benefits of the improved financing environment.
- IMF staff supports the authorities’ request for the completion of the first and second reviews under the EFF Arrangement.
Program Measures and Policy Actions
- Liberalization of the foreign exchange system within a flexible exchange rate regime.
- Significant tightening of the overall policy mix.
- Reduction in public investment to reallocate resources and improve fiscal sustainability.
- Measures to level the playing field for the private sector to drive growth.
- Ongoing structural reforms intended to consolidate improvements from the financing environment.
Financing, Risks, and External Developments
- The Ras El-Hekma investment deal is identified as a sizable investment that alleviates near-term financing pressures.
- Continued implementation of program policies is highlighted as critical to addressing macroeconomic challenges and sustaining improved financing conditions.
Structural Reforms and Institutional Measures
- Emphasis on robust delivery of structural reforms to lock in benefits from the improved financing environment.
- Focus areas include public financial management and revenue administration (as reflected in subject tags).
IMF Staff Position
- IMF staff supports the authorities’ request for completion of the first and second reviews under the EFF Arrangement.
Publication and Metadata
- Publication date: April 26, 2024
- Pages: 104
- Volume: 2024
- Issue: 098
- Series: Country Report No. 2024/098
- DOI: https://doi.org/10.5089/9798400273964.002
- Stock No: 1EGYEA2024001
- ISBN: 9798400273964
- ISSN: 1934-7685
- Subjects: Budget planning and preparation, Foreign exchange, Fuel prices, International organization, Monetary policy, Prices, Public financial management (PFM), Revenue administration
- Keywords: Budget planning and preparation, fuel price subsidy, Fuel prices, interbank FX turnover, liberalized foreign exchange system, policy slippage, system functioning
Source: Arab Republic of Egypt: First and Second Reviews Under the Extended Arrangement Under the Extended Fund Facility, Monetary Policy Consultation, and Requests for Waiver of Nonobservance of a Performance Criterion, and Augmentation and Rephasing of Access-Press Release; and Staff Report (April 26, 2024).
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- 1egyea2024001