Egypt scores high on IMF report card for economic reforms
IMF unlocks $820 million as part of $57 billion bailout Egypt received to help pull economy out of worst financial crisis in decades
IMF building in Washington D.C. (Getty Images)
Egypt’s IMF-prescribed program to reform the economy with steps that include selling off state assets and devaluing the Egyptian pound won praise from the Washington-based lender after a review this week.
In turn, the IMF unlocked $820 million in support for the economy as part of the $57 billion bailout that Egypt received to help it emerge from its worst financial crisis in decades. “The Egyptian authorities’ recent efforts to restore macroeconomic stability have started to yield positive results,” the IMF said in a statement on Monday.
In the final runup to the review, Egypt raised fuel prices by up to 15% and Prime Minister Mostafa Madbouly announced further plans to reduce energy subsidies. Still, the IMF called on the government to ratchet up its efforts to divest from state-owned businesses.
Egypt, meanwhile, is showcasing the reforms as it seeks more funding for business projects from Saudi Arabia. Egyptian Investment and Foreign Trade Minister Hassan El-Khatib said after a meeting in Cairo with Saudi Ambassador to Egypt Saleh bin Eid Al-Hussaini that the government “is keen to create a favorable investment climate and provide all necessary support to Saudi investors.”