IMF experts agree to final tranche of $12b loan to Egypt

CAIRO – 18 May 2019: International Monetary Fund experts has recommended the disbursement of the 6th and last tranche of $2 billion to Egypt in their review to its economic reform program.

An IMF delegation headed by Subir Lall visited Egypt May 5-16, where a staff-level agreement was signed with the Egyptian authorities to receive the final batch of a $12-billion loan that has been disbursed over three years. The agreement awaits the approval of the IMF Executive Board.

“Going forward, the main priorities include raising tax revenues for much needed spending on health, education and social programs,” the delegation said in a Friday statement.

The statement favorably mentioned targeted social and business initiatives such as Takafol and Karama, Forsa, Sakan Karim and Mastura.

The delegation commended the Egyptian government for ambitiously following the reform plan, culminating in a GDP growth, unemployment decline, account deficit reduction, international reserves increase.

The efforts Central Bank of Egypt were also highlighted in the statement, with inflation decrease, investment in infrastructure, and reduction of non-tariff trade barriers.

As the review is the IMF’s last in Egypt, the delegation said key reform areas include: improving access to finance; improving industrial land allocation; enhancing competition; strengthening transparency and management of state-owned enterprises; and fighting corruption.