Will Egypt’s cooling inflation, economic growth satisfy IMF ahead of $8B loan review?
The IMF is set to send a mission to Cairo this fall to review Egypt’s $8 billion loan program.
Egypt is heading into its next IMF review on firmer footing, with inflation easing and growth improving. A drop in urban inflation to 12% in August marks progress, but the IMF is still pressing Cairo for deeper reforms — specifically relating to curbing the state's oversized economic role — to sustain Egypt's momentum.
At a press briefing on Thursday, Julie Kozack, head of the IMF’s Communications Department, urged Egypt to push forward with reforms aimed at strengthening the private sector and reducing economic vulnerability, according to Egypt’s Al-Ahram newspaper.
Kozack also confirmed a visit by an IMF team to Cairo this fall to complete the combined fifth and sixth reviews of the IMF’s $8 billion loan program and to begin discussions on the first review of a separate $1.3 billion loan program focused on sustainability and climate change. Specific dates of the review have not been confirmed.
Broadening Egypt's tax base, improving public spending efficiency, liberalizing the country's foreign exchange system and divesting from state-owned enterprises are some of the key reforms the IMF is pushing for.
