IMF: Egypt review delay not unusual

The International Monetary Fund’s (IMF) postponement of the third review of Egypt’s economic reform programme “is not unusual and is related to the need to finalise some details,” said IMF senior official in recent press briefing.

The review was initially scheduled for July 10, but has been rescheduled to July 29.

Julie Kozack, Director of the Communications Department at the IMF, reassured that the Fund’s staff and Egyptian authorities had agreed on comprehensive policies and reforms for the review.

Approval by the IMF’s executive board would grant Egypt access to approximately $820 million.

Kozack has lauded the recent efforts by the Egyptian authorities to restore macroeconomic stability have helped improve economic conditions in Egypt. She said these government efforts to restore macroeconomic stability have “helped improve economic conditions in Egypt.”

Inflation has decreased for four consecutive months, dropping from 35.6 per cent in February to under 28 per cent in June. Additionally, the foreign exchange demand backlog has been eliminated, and there are signs of recovery in private sector activity after a prolonged contraction, she noted.

However, Kozack stated that the regional environment remains “difficult.” A significant drop in shipping volume through the Suez Canal has led to a more than 50 per cent decrease in revenue compared to the previous year, adding pressure to Egypt’s economy.

Despite these challenges, Kozack expressed confidence in the path forward for Egypt, highlighting the importance of continued economic policies to benefit the Egyptian people. The IMF remains actively engaged with Egyptian authorities to support their reform efforts.

“And I can say that, … Staff is actively engaged with the Egyptian authorities … we’re quite confident on the path forward for Egypt.” Kozack  concluded.

Attribution: IMF’s press briefing