IMF: $35 billion Ras el-Hekma deal supports Egypt's economy, to help handling of future shocks

CAIRO - 30 March 2024: The International Monetary Fund (IMF) said that the $35 billion deal to develop Ras El Hekma city supported Egypt’s economy, reduced pressure on the balance of payments in the near term, and will help the Egyptian economy’s handling of future shocks.

 

The International Monetary Fund stressed the importance of implementing economic policies and supporting the private sector to be an engine of growth.

 

The International Monetary Fund said that Egypt is implementing a strong plan to achieve economic stability, focusing on achieving a flexible exchange rate system and supporting the private sector to be a leader in economic growth.

 

The Executive Board of the International Monetary Fund recently completed the first and second reviews of the Egyptian financing program and raised the value of the loan from $3 billion to $8 billion.

 

The International Monetary Fund said in a press statement that the completion of the discussion of the first and second review of Egypt’s economic program allows for the disbursement of $820 million of the total financing value.

 

The International Monetary Fund pointed out the importance of the flexible exchange rate mechanism, and it was agreed to increase social spending and support the neediest groups, stressing that discussions between the International Monetary Fund and the Egyptian government will continue during the next stage.