Accord reached with IMF on fresh package of economic structural reforms

The Central Bank of Egypt (CBE) and the Ministry of Finance announced on Sunday the success of the visit and the technical meetings an Egyptian delegation, headed by Finance Minister Mohamed Maeet, held in Washington DC over the past few days with the managers and the experts of the International Monetary Fund (IMF).

The meetings and the visit, the CBE and the Ministry of Finance said, resulted in complete agreement on policies and economic and structural reforms within the new Egyptian economic reform programme.

The programme, they added in a statement, would be supported by the IMF.

They noted that the reform programme includes three main axes: reforms and measures related to fiscal policies, monetary policies and structural reforms, and measures related to financial policies.

The CBE and the Ministry of Finance said Egypt would maintain fiscal discipline efforts by working to keep achieving annual primary surpluses in the public budget, reducing the debt-to-gross domestic product (GDP) ratio to less than 80% in the medium term,prolonging the duration of government debts, and diversifying funding sources.

The government, they added, would also work to improve the efficiency of revenues and spending in the public budget, increase spending on human development, expand financing to social protection programmes, especially ones aimed at increasing the income of state workers, and increase insurance and pension allocations that benefit over 10 million citizens.

The CBE and the Ministry of Finance indicated that the government would also keep working to strengthen the Solidarity and Dignity programme, noting that the government raised the number of programme beneficiaries in the past period to 5 million.

“The government will also continue to fund the Decent Life Programme,” the CBE and the Finance Ministry said, noting that the programme aims to improve all aspects of life and infrastructure in all Egyptian villages and rural areas.

They added that the government would also work to enhance transparency and financial disclosure efforts.