IMF, Egypt reaches staff level agreement worth US$820 million

The International Monetary Fund (IMF) announced on Thursday that it reached a staff level agreement with Egyptian authorities on a set of comprehensive policies and reforms needed to complete the third review under the Extended Fund Facility (EFF) arrangement.

Subject to approval by the IMF’s Executive Board, Egypt will have access to about US$820 million, an IMF statement said.

The statement comes shortly after a delegation from the fund concluded a two-week visit to Cairo.

“Tight monetary conditions are needed in the short term to reduce inflation. A flexible exchange rate regime remains a cornerstone of the authorities’ macroeconomic program,” the IMF added.

It explained that the stage is set for an acceleration of structural reforms, which will prove essential towards sustainably raising private sector-led growth.

“The reform agenda includes measures to improve the business environment, by removing binding constraints to private sector activity and leveling the playing field vis-à-vis state entities,” the statement reads.