IMF answers key questions on Egypt's loan, reforms program

CAIRO – 14 July 2017: The International Monetary Fund (IMF) published on Thursday on its website key questions regarding its agreement with Egypt and the country's reforms program with its latest controversial moves.

The IMF noted that its $12 billion Extended Fund Facility (EFF) supports the authorities' comprehensive economic reform program to restore macroeconomic stability and return Egypt to strong and sustainable growth.

The statement highlighted that the reforms' program aims to improve the functioning of the foreign exchange markets, bring down the budget deficit and government debt, and raise growth to create jobs, especially for women and youth.

The program aims to protect the most vulnerable groups in the society during the process of adjustment, IMF stated.

In the question and answers form, the IMF published 12 questions with their answers, including the details of the loan granted to Egypt, with an explanation for how could it help promoting good governance and increasing transparency in Egypt.

The questions also included clarification for the latest decisions taken by the Central Bank of Egypt (CBE) raising the interest rate and whether the move would benefit or have negative effect on the country's growth.

The IMF answered questions regarding the form of Egypt's reforms program and commented on the latest fuel price hike.

On Thursday, the IMF approved the disbursement of the second tranche worth $1.25 billion of Egypt's $12 billion loan.

The approval followed the completion of the IMf's Executive Board for the first review of Egypt’s economic reform program supported by an arrangement under the EFF, IMF said in a statement.