Egypt helps manage many fiscal risks – IMF’s Georgieva in Dubai

Egypt is helping manage many fiscal risks, including from public guarantees and losses by state-owned enterprises, by improving its monitoring of them, said International Monetary Fund‘s (IMF) managing director, Kristalina Georgieva on Sunday.

“Governments must also manage many fiscal risks, including from public guarantees and losses by state-owned enterprises, which could destabilize debt and require drastic cuts to vital spending. Egypt is helping manage these risks by improving its monitoring of them.” Georgieva said at the Seventh Arab Fiscal Forum in Dubai.

Egypt is currently in a 46-month loan programme under the IMF’s Extended Fund Facility that aims to tackle the imbalances the economy has been facing since the outbreak of the Russian war in Ukraine.

The IMF official also referred to the ongoing discussions with the Egyptian government, among other countries in the Arab region, regarding a new loan worth $1 billion from the newly established Resilience and Sustainability Trust.

Georgieva added that IMF puts climate at the heart of its work and is working with partners to make progress on the climate finance agenda.

“Here, too, the IMF is doing its part. We have put climate at the heart of our work, and are working with partners to make progress on the climate finance agenda. And this includes our new Resilience and Sustainability Trust, which aims at improving policies and providing affordable long-term financing to address climate challenges. We are already in discussions with Egypt and other countries for RST funding.”