IMF Postpones Fourth Review of Egypt’s Economic Reform Program
The International Monetary Fund (IMF) has delayed the fourth review of Egypt’s economic reform program until later next month, according to a government official. This review is crucial as Egypt is expected to receive $1.3 billion as part of the IMF’s extended fund facility (EFF) once it is completed.
This delay marks the second time the review has been postponed in 2024, raising concerns about the Egyptian government’s ability to meet the IMF’s requirements. The IMF extended Egypt’s loan program from $3 billion to $8 billion earlier this year, emphasizing the need for the country to gradually lift subsidies on basic goods, fuel, and electricity, and reduce tax exemptions.
Despite the economic challenges, Egypt is undergoing a process of economic liberalization, recommended by the IMF. Controversial measures such as raising the price of bread and fuel have sparked discontent among the population. It is a challenging time for Egypt as it navigates through economic reforms to stabilize its macroeconomic environment in the face of regional turmoil.