## 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_

## Source details

**Canonical URL:** [Arab Republic of Egypt: Request for Extended Arrangement Under the Extended Fund Facility-Press Release; and Staff Report](https://www.imf.org/en/publications/cr/issues/2023/01/06/arab-republic-of-egypt-request-for-extended-arrangement-under-the-extended-fund-facility-527849)

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## Bibliographic details
- Published: January 10, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400228469.002

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### 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).*

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_Source: https://www.imf.org/en/publications/cr/issues/2023/01/06/arab-republic-of-egypt-request-for-extended-arrangement-under-the-extended-fund-facility-527849_