IMF calls on Egypt to push forward with economic reforms during Cairo visit

Posted on November 6, 2024   |  

The IMF emphasized that Egypt should continue with the agreed reforms despite the challenges from the program.

The IMF chief held a press conference with Egypt’s Prime Minister during a visit to Cairo's new administrative capital.

Egypt's government asked the IMF for extensions on repayment and subsidy cut deadlines.

The IMF was more flexible on reforms to reduce the state's and military’s economic influence, boost private sector involvement, and improve financial transparency.

Egypt requested more lenient loan conditions due to the impact of regional conflicts, such as the Gaza war and Sudan's civil war.

The government pointed to a 70% drop in Suez Canal revenue from Houthi attacks on Red Sea shipping.

Some experts questioned Egypt’s use of the Gaza war as a reason for policy changes, as the IMF had already considered this in March.

The IMF noted positive economic trends, including lower inflation, rising foreign currency reserves, and a shift to cash-based subsidies, along with Egypt’s improved credit rating from Fitch.