IMF: Egypt maintains reform goals, adjusts implementation to economic realities

International Monetary Fund (IMF) Managing Director Kristalina Georgieva has reaffirmed on Monday that Egypt remains committed to its economic reform objectives, making adjustments to the implementation path to accommodate evolving fiscal conditions.

Speaking in an interview with Sky News Arabia, Georgieva clarified that Egyptian authorities have not requested changes to their reform goals but have instead sought to adapt the pace of implementation in response to economic challenges, particularly the significant decline in Suez Canal revenues due to regional instability.

“What they have asked for is making the path of implementing the reforms align with the changes in their fiscal conditions,” Georgieva stated, emphasising the IMF’s understanding of external shocks affecting Egypt’s economy and its willingness to recalibrate the reform strategy accordingly.

“Revenues from the Suez Canal have decreased significantly, so we have recalibrated somewhat the path of reforms. The goal remains the same but how we get to this goal is fitting the current circumstances …”

Despite these adjustments, Georgieva reaffirmed the IMF’s confidence in Egypt’s economic trajectory, stressing that the country remains on course with its commitments.

“… we (IMF) as management are very comfortable with the reform package.” Georgieva noted. “We are comfortable with the adjustments that have been done to reflect on the difficult conditions Egypt finds itself in as you know because of factors outside of their control.”

She also acknowledged that a potential ceasefire in Gaza could improve regional stability, benefiting Egypt’s economic outlook.”I do hope that the ceasefire agreement, the path to peace for for Gaza is going to calm down the situation in the region benefiting everybody benefiting Egypt as well…,”

The IMF’s executive board is set to review Egypt’s fourth economic assessment and a proposed $1.3 billion Resilience and Sustainability Facility (RSF) in the coming weeks, signaling continued international support for Egypt’s economic reform agenda.

Attribution:Amwal Al Ghad English