Egypt says IMF agreed to merge first two reviews of loan programme
Egypt said on Saturday it had agreed with the International Monetary Fund (IMF) to merge the fund’s first and second reviews of its economic reform programme.
This came after the first review was repeatedly delayed amid questions over Egypt’s progress in meeting the IMF’s loan terms.
In December last year, the executive board of the IMF approved a 46-month arrangement of about $3 billion under the Extended Fund Facility (EFF) to Egypt.
Disbursements under the programme are subject to eight reviews, the first of which was supposed to take place on March 15, 2023.
“Both the International Monetary Fund and the Egyptian state agreed to merge the first and second reviews at the same time, which is expected to be determined before the end of 2023,” according to a detailed budget explanation by Egypt’s finance ministry released through its website.
The ministry added that negotiations with the IMF were proceeding “fruitfully and positively” in accordance with the terms of the programme concluded with the Fund.
Egypt vowed to adopt a flexible exchange rate when it reached the loan arrangement with the IMF late last year. The official rate has remained almost with no change for almost six months at about 30.93 to the U.S. dollar.
In June, Egypt President Abdel Fattah al-Sisi appeared to rule out a further devaluation of the pound currency anytime soon, saying such a move could harm national security and hurt Egyptian citizens.
