IMF lauds improved Egyptian economy, allows immediate draw of $820mn

The Executive Board of the International Monetary Fund (IMF) has completed the third review of Egypt's Extended Fund Facility (EFF) arrangement. This enables the authorities to immediately draw about US$820 million, an IMF statement said Tuesday. Egypt's 46-month EFF arrangement was approved on December 16, 2022. Macroeconomic conditions have started to improve since the approval of the combined first and second reviews of the program in March, the statement said. Inflationary pressures are gradually abating, foreign exchange shortages have been eliminated, and fiscal targets were met, it added. These improvements are beginning to have a positive effect on investor confidence and private sector sentiment, according to the statement. At the same time, the difficult regional environment generated by the conflict in Gaza and Israel and tensions in the Red Sea call for continued implementation of program commitments, read the statement. Maintaining a flexible exchange rate regime and a liberalized foreign e xchange system will be imperative to avoid a buildup of external imbalances, it noted. Source: State Information Service Egypt