First Published: 2017-09-26

IMF satisfied with Egypt's 'bold' reforms
Cairo has implemented set of drastic economic reforms, adopting value-added tax, cutting energy subsidies and floating Egyptian pound.
Middle East Online

IMF report released on Tuesday says Egypt off to 'good start'.

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 $12-billion 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 percent 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 $1.25 billion, which followed the disbursement of a $2.75 billion 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.


Abbas calls US ambassador to Israel 'son of a dog'

Saudi crown prince keen to cement ties with US

IS controls Damascus district in surprise attack

Pro-Turkish forces loot Afrin

Iraqis flock to flea market for relics of bygone era

Erdogan tells US to stop ‘deceiving’, start helping on Syria

UN says Turkey security measures 'curtail human rights'

French ex-president held over Libya financing allegations

NGO says Israeli army violating Palestinian minors’ rights

Human rights chief slams Security Council for inaction on Syria

US warns Turkey over civilians caught in Syria assault

Erdogan vows to expand Syria op to other Kurdish-held areas

Kurdish envoy accuses foreign powers of ignoring Turkish war crimes

Morocco authorities vow to close Jerada's abandoned mines

Israeli soldier sees manslaughter sentence slashed

Turkey insists no plans to remain in Afrin

Cairo voters show unwavering support for native son Sisi

Forum in Jordan explores new teaching techniques

Gaza Strip woes receive renewed attention but no fix is expected

Kurds, Syrian opposition condemn Afrin looting

36 jihadists killed in Egypt’s Sinai

Israel arrests French consulate worker for gun smuggling

Israel prepares to demolish Jerusalem attacker's home

Saudi crown prince says his country to seek nuclear bomb if Iran does

Arab women artists in diaspora focus on identity and loss

Tunisia’s Central Bank targets inflation but may hurt growth prospects

Libya’s health system reflects a larger humanitarian crisis

Israel blasts Gaza underground tunnel

Abu Dhabi awards France's Total stakes in oil concessions

Erdogan says Afrin city centre under ‘total’ control

Egypt tries to contain Sudan but challenges, suspicions remain

US defence secretary presses Oman on Iran weapons smuggling

Syrian regime retakes two towns from Ghouta rebels

Hamas shutters mobile firm after Gaza attack on PM

Israel punishes family members of West Bank attacker

Syria opposition says UN 'failed to prevent' Assad 'crimes'

UK tries to soothe Egyptian anger over mob attack death

Hundreds of thousands flee in dual Syria assaults

Turkish Cypriots vow to stand firm in gas dispute

Intensifying assaults in Syria spark dual evacuations

Tearful reunions, uncertain fates for Syrians fleeing Ghouta

Iran deal signatories meet as Trump deadline looms

Thirty years on, Kurds remember Halabja massacre

Air India says will fly over Saudi airspace to Tel Aviv

UN chief calls for end to Lebanese 'meddling' in Syria