IMF and Egypt reached a staff-level agreement on a $3 billion Extended Fund Facility (EFF) Arrangement

The new EFF, with a requested access of SDR 2.35 billion (equal to $ 3 billion), will provide a balance of payments and budget support while catalyzing extra financing from Egypt’s international and regional partners to maintain economic stability, address macroeconomic imbalances, protect livelihoods, and promote private sector-led growth and job creation.
The government’s fiscal policy under the EFF will aim to reduce general government debt and gross financing needs.
Social protection will continue to be maintained through the temporary extension of emergency support to ration card holders and efforts to protect the purchasing power of weak wage earners and pensioners.
The EFF will support the (Central Bank of Egypt) CBE’s efforts to improve the functioning of the foreign exchange market, boost foreign reserves, and further improve monetary policy transmission.
The EFF also aims to unlock Egypt’s growth potential via widening and deepening structural and governance reforms.
The program will include policies to release private sector growth by lowering the state footprint, adopting a more competitive framework, enhancing transparency, and securing improved trade facilitation.
The IMF arrangement will catalyze a large multi-year financing package, including $5 billion in FY2022/23, that mirrors broad international and regional support for Egypt.

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