Egypt meets 7 out of 15 structural benchmarks: IMF

CAIRO - 27 April 2024: Egypt has fulfilled 7 out of 15 structural benchmarks required to complete the International Monetary Fund (IMF) first and second review of the financing program, according to the IMF experts’ report.

 

The IMF announced that the authorities repealed the required use of Letters of Credit, although the repeal failed to fulfill its intended objective of removing an instrument for rationing import demand.

 

The government also published a state-ownership policy.

 

It added that the authorities amended aspects of the competition law governing M&As (although the executive regulation governing their implementation is yet to be approved by Cabinet), 

 

Moreover, the authorities expanded the number of households eligible for social assistance, and identified tax policy measures for the FY2023/24 budget.

 

The report revealed that the authorities abstained from granting exemptions for commercial banks that breach net FX open position limits and they refrained from introducing subsidized lending schemes through the CBE. The authorities published the CAO’s audits of the fiscal accounts on time but have not introduced a binding requirement to publish annual fiscal audits regularly. 

 

“All missed structural benchmarks have been reset with the exception of one on release times at the ports and another on conversion of land records to an electronic register as they are no longer critical for the Fund supported program and the removal of which allows space in the program’s structural conditionality for more pressing priorities,” the report added.

 

Earlier, The International Monetary Fund (IMF) released its experts' report on Egypt's first and second review of its financing program, shedding light on the country's economic policies and financial commitments.

 

The completion of the third review of the financing program is expected by June 15, 2024, or later, with the fourth review by September 15, 2024, or later. Egypt has committed to providing the IMF with accurate and timely data necessary for program monitoring reviews, as well as any information materially affecting economic conditions and program objectives.