IMF Chief says Egypt may need to slowdown projects to avoid macroeconomic instability

Egypt may need to slow down the pace of projects than originally planned to avoid damaging its macroeconomic stability, Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva said during a press briefing held on Thursday.

Georgieva’s statements come amid preparations for a review of the country’s crucial $3 billion rescue package.

The IMF and Egypt “agreed on a sound program” with pillars that include implementing a freer exchange rate and boosting the private sector, the nation needs to “moderate the long-term investment projects that are indeed very important and very good for Egypt,” Georgieva indicated.

The IMF approved in December 2022, a 46-month arrangement under the Extended Fund Facility (EFF) for Egypt to receive a loan of $3bn. The agreement is expected to catalyze additional financing of about $14bn from Egypt’s international and regional partners, including new financing from GCC countries and other partners through the ongoing divestment of state-owned assets as well as traditional forms of financing from multilateral and bilateral creditors.