WASHINGTON- The International Monetary Fund (IMF) Board has completed the First and Second Reviews of the extended arrangement under the Extended Fund Facility (EFF) for Egypt and approved an augmentation of the original program by about US$5 billion (SDR 3.76 billion), allowing the authorities to draw the equivalent of about US$820 million (SDR 618.1 million).
IMF said in a statement that a strong economic stabilization plan is being implemented that is centered on a liberalized foreign exchange system in the context of a flexible exchange rate regime along with reducing public investment, and leveling the playing field to allow the private sector to become the engine of growth.
While the recent sizable investment deal in Ras El-Hekma alleviates the near-term financing pressures, implementation of the economic policies under the program remains critical to address Egypt’s macroeconomic challenges, the statement added.
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