IMF praises Egypt for 'bold' economic reforms

accreditation
iStock
iStock

Cairo - The International Monetary Fund on Tuesday expressed satisfaction over the Egyptian government's "bold" economic reforms, as it prepares to release the third tranche of a $12bn loan to the country.

In order to obtain the IMF's approval for the loan in November, Cairo has implemented a set of drastic reforms, adopting a value-added tax, cutting energy subsidies and floating the pound.

Subir Lall, the head of the IMF mission for the country, commended Egypt for the measures, which the fund is evaluating along with their effects as part of the three-year programme.

"The measures that have been taken by the authorities were bold, and we agree that they were necessary to reverse the build-up of imbalances that were hindering higher growth and job creation," Lall told reporters in an online briefing.

On Tuesday, the IMF released a report reviewing the programme, saying "Egypt's reform programme is off to a good start".

The rate of inflation in Egypt spiked after authorities implemented the set of drastic measures.

Lall said inflation, which stood at 33.2% on-year in August, was expected to drop to single digits by 2019.

In July, the IMF approved the second tranche of the loan, worth $1.25bn, which followed the disbursement of a $2.75bn tranche in November 2016.

"In terms of the third disbursement: that would follow after the second review of the programme, which is expected to be completed by the IMF executive board by the end of December," Lall said.

Since the 2011 revolt toppled former president Hosni Mubarak, the economy of Arab world's most populous country has received multiple shocks caused by political instability and security issues.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Lockdown For
DAYS
HRS
MINS
Voting Booth
Facebook is facing a fresh crisis after a former employee turned whistle-blower leaked internal company research. Do you still use Facebook?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, the benefits outweigh the risk for me
32% - 1981 votes
No, I have deleted it
38% - 2370 votes
Yes, but I am considering deleting it
30% - 1873 votes
Vote
Rand - Dollar
14.64
-0.2%
Rand - Pound
20.11
+0.0%
Rand - Euro
16.96
-0.0%
Rand - Aus dollar
10.84
-0.0%
Rand - Yen
0.13
-0.0%
Gold
1,767.80
+0.0%
Silver
23.33
+0.1%
Palladium
2,076.50
+0.1%
Platinum
1,060.00
+0.1%
Brent Crude
84.86
+1.0%
Top 40
60,494
0.0%
All Share
67,029
0.0%
Resource 10
64,347
0.0%
Industrial 25
84,819
0.0%
Financial 15
13,961
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE