British PM reiterates support of Egypt’s economic reform steps

British Prime Minister Theresa May has retiterated her country’s full support of Egypt’s economic reform measures during a meeting with Egyptian Prime Minister Sherif Ismail on Thursday on the sidelines of the London Somalia Conference.

The Egyptian and British leaders discussed efforts undertaken in Egypt to improve economic performance as well as the government’s vision for reform, according to a statement by Egypt’s Cabinet.

In November, Egypt agreed the three-year programme with the International Monetary Fund (IMF), after floating its Egyptian pound currency in a dramatic move aimed at unlocking foreign inflows and boosting exports after a long-running dollar shortage threatened to paralyse the economy.

It promised a raft of tough reforms, including narrowing its budget deficit, in return for the $12-billion loan package from the IMF and a host of other bilateral backers with payments spread over three years and linked to progress on reforms.

As part of reform efforts, Egypt has introduced a Value Added Tax (VAT) and secured $4 billion in eurobonds from international markets in an oversubscribed issuance. It is also part way through a programme to reform power and fuel subsidies and is preparing to privatise several state owned banks and energy companies.