IMF, Egypt agree to finalise work to reach staff-level agreement ‘very soon’

The International Monetary Fund (IMF) has agreed with authorities in Egypt to finalise work to reach a staff-level agreement “very soon”, IMF spokesman Gerry Rice said in a statement on Saturday.

“IMF staff and the Egyptian authorities have held very productive in-person discussions on the margins of the IMF and World Bank Annual Meetings and made substantial progress on all policies,” Rice stated.

“A continued fiscal consolidation path that will safeguard public debt sustainability and ensure a steady decline of the debt-to-GDP ratio over the medium term. Additional fiscal and related structural policies that would further expand the social safety net for the most vulnerable, improve the budget composition, and enhance fiscal transparency.”

“Monetary and exchange rate policies that would anchor inflation expectations, improve monetary policy transmission, improve the functioning of the foreign exchange market, and bolster Egypt’s external resilience.”

This would enable the North African country to gradually and sustainably rebuild foreign reserves.

“The implementation of the authorities’ comprehensive structural reform agenda would gradually enhance the competitiveness of the economy, reduce the role of the state in the economy, level the playing field for the private sector, improve the business climate, and foster transition towards a greener economy.