The International Monetary Fund (IMF) recently reaffirmed that the size of Egypt’s $8 billion loan program remains sufficient for the country’s needs. The announcement was made in response to concerns expressed by Egyptian President Abdel Fattah al-Sisi on Sunday about the possible need to reevaluate the lending program due to the exceptional regional challenges facing Egypt. .
President Sisi’s statement emphasized that Egypt could be under pressure to reconsider expanding its loan agreement with the IMF if international organizations do not take into account the unique difficulties the country is experiencing. The loan program Egypt agreed with the IMF in March stipulates that the country must implement several economic reforms. These include reducing subsidies for essential goods such as fuel and electricity and allowing the Egyptian pound to float freely. This situation has caused widespread dissatisfaction among the population.
The IMF on Thursday underlined its commitment to working with Egyptian authorities to improve the effectiveness of the country’s social protection programs. The Fund is prioritizing the evaluation of these programs to ensure they reach those in need and are sufficiently robust.
At a press conference, Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, stressed the importance of Egypt maintaining exchange rate flexibility, which is also a condition of IMF financing. The IMF’s emphasis on social protection measures reflects concerns about the impact of economic reforms on Egyptians.
Reuters contributed to this article.
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