IMF completes first review of Extended Fund Facility with Egypt

WASHINGTON — The government and central bank of Egypt have taken the correct measures to rein in inflation, reduce the budget deficit and set the Egyptian economy on a path to stability and growth, according to Christine Lagarde, Managing Director of the International Monetary Fund, IMF, in a statement after its Executive Board approved the first review of Egypt’s Extended Fund Facility, EFF, which will facilitate the disbursement of around US$1.25 billion.

“I would like to congratulate the people of Egypt and its authorities for their success in pursuing their ambitious economic reform programme. The approval by the IMF Executive Board of the first review of the programme shows the IMF’s strong support for Egypt in these efforts. We believe that these efforts will yield results. The government and the central bank have taken the right measures to rein in inflation, reduce the budget deficit and set the Egyptian economy on a path to stability and growth. I am very pleased that the government has taken and will continue to take measures that protect poor and vulnerable groups, including through increased social spending,” she stated.

“We look forward to continuing our partnership with Egypt, to help unleash its economic potential and achieve higher and more inclusive growth that will benefit all Egyptians,” she added.

The completion of the review will allow authorities to draw the equivalent of SDR895.48 million, around $1.25 billion, bringing the total disbursements to SDR2,865.53 million, or around $4 billion.

The three-year EFF arrangement in an amount equivalent to SDR8.597 billion, around $12 billion at the time of approval or 422 percent of quota, was approved by the Executive Board on November 11, 2016 (according to Press Release No. 16/501), to support the local authorities’ economic reform programme.

Source: Emirates News Agency