Egypt’s Finance Minister Mohamed Maait asserted that a decision by the International Monetary Fund (IMF) Board to approve an augmentation of the original program to about US$8 billion instead of US$3 billion reflects the importance of measures to rectify the track of the Egyptian economy with integrated and coordinated financial and monetary policies.
In a statement by the Finance Ministry on Saturday, Maait said the move is meant to stimulate the flows of direct foreign investment.
The IMF-backed economic reform program aims to restore economic stability and is supported by other financing institutions and international development partners, he added.
IMF’s Board had announced to complete the First and Second Reviews of the extended arrangement under the Extended Fund Facility (EFF) for Egypt.
IMF had 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 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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