IMF welcomes Egypt’s sale of equity stakes in state-owned entities
The International Monetary Fund (IMF) welcomes the Egyptian authorities’ announcement about signing contracts to sell equity stakes in state-owned entities worth $1.9 billion, said director of the Fund’s Communication Department on Thursday.
“Divestment, as I noted, is a critical component of the EFF-supported program, supporting the gradual withdrawal of the state from economic activity and providing resources for external financing and debt reduction.” Julie Kozack told reporters in a press briefing at the IMF’s headquarters in Washington.
“The announcement constitutes important progress in implementing a key element of the comprehensive policy package aimed at restoring macroeconomic stability.”
On December 16, 2022, the IMF’s Executive Board approved an Extended Fund Facility (EFF) of about $3 billion. The IMF EFF aims to support the Egyptian authority’s own reform programme, which has the objectives of addressing economic vulnerabilities, restoring buffers, strengthening the social safety net, and promoting sustainable and inclusive growth and job creation.
“The IMF remains engaged with the Egyptian authorities to pave the way for completion of the first review of the EFF. This includes steady implementation of the divestment strategy in introducing policies that provide for competitive neutrality for all firms to promote a level playing field and sustainably moving toward a flexible exchange rate to alleviate foreign exchange shortages.” Kozack concluded.
