‘Good’ signs from the IMF on Egypt’s reform progress: Mohieldin

CAIRO – 8 May 2018: World Bank Senior Vice President Mahmoud Mohieldin said in a televised statement on Tuesday that there are “good” signs from the International Monetary Fund (IMF) concerning Egypt’s reform program.

A delegation from the IMF is currently visiting Egypt to review progress on economic reforms.

Speaking to government officials as part of an IMF visit to review Egypt’s reform program on Sunday , IMF First Deputy Managing Director David Lipton praised the country’s progress but said “broadening and deepening the reform agenda” is crucial to take advantage of ripe global conditions.

He said the reforms need to move further, particularly with measures aimed at scaling back the country’s sprawling public sector in order to allow for dynamic private sector growth.

The review is necessary before the IMF disperses the fourth tranche of the $12 billion loan deal.

In December 2017, Cairo received the third tranche of the loan, worth $2 billion. The fourth disbursement will bring the total Egypt has received so far to $8 billion.

Egypt clinched a $12 billion loan deal with the IMF in late 2016, shortly after the country floated its local currency. This came as part of a reform program that also included cutting energy subsidies and introducing new taxes.

Egypt’s reform program received much praise during the IMF spring meetings this year. IMF Managing Director Christine Lagarde said that floating the currency, rebuilding foreign reserves, and reducing the fiscal deficit were all actions the government had taken that showed it was heading in the right direction.

The IMF expects Egypt’s economic growth rate to hit 5.2 per cent in the current fiscal year, registering up to 5.8 per cent in the 2018/2019 fiscal year, Minister of Finance Amr el-Garhi said in a statement made in Washington.