IMF says Egypt needs new ‘reform programme’ to develop private sector

The International Monetary Fund (IMF) on Thursday recommend that Egypt needs a new package of reforms geared towards supporting and developing its private sector, thus leading to the creation of new job opportunities.

IMF spokesperson Gerry Rice said at a press conference that the Fund expressed interest in working with Egypt on this matter.

Egypt requires new structural reforms to develop its private sector and said that “I believe that the Egyptian government itself adopts the same viewpoint.”, Rice said.

Egypt recently completed the final stage of its IMF-backed three-year $12 billion economic reform programme.

The IMF believes that Egypt has benefited from a financial support plan through the economic reform programme to pump $12 billion thanks to a three-year plan which initiated in November 2016 and ended in 2019.

Rice explained that this programme allowed Egypt’s economy to stabilise – with returning growth rates, the economy achieving good momentum, inflation rates declining, and the current account deficit falling.

While “We do not currently have a financing program for Egypt,” discussions are being made to determine an appropriate intervention for the IMF in the future, the Fund official added.

The IMF is ready to assist Egypt in every possible way, Rice said.

In an attempt to revive its faltering economy since 2011, Egypt obtained an IMF loan in 2016 in exchange for implementing a rigorous reform program, beginning with floating the pound.

In November 2016, the IMF agreed to provide Egypt with a $12 billion loan, in exchange for wide-ranging structural economic reforms. These reforms included a raft of harsh measures such as devaluing the pound currency, loosening capital controls, ending energy subsidies, reforming public enterprises, and overhauling monetary policy – all in an attempt to restore economic stability and long-term growth.

Source: Egypt Independent