During a joint press conference with the Egyptian Prime Minister, Georgieva affirmed her support for “stability and economic development” for the most populous Arab country.
Georgieva said, “The fourth review of the program will begin the day after tomorrow and the Fund’s work team will begin its work starting the day after tomorrow with the Central Bank and the relevant ministries.”
The review comes under an agreement signed by Cairo with the International Monetary Fund last April, to increase the original loan from $3 billion to $8 billion to support Egypt in managing its current financial crisis.
It was scheduled to take place International Monetary Fund At the end of September, there was a new review of the loan agreement concluded with Egypt in April, but the Fund postponed the review, thus postponing Egypt’s obtaining a new tranche of the loan worth $1.2 billion.
Each of the first three reviews had allowed Egyptian authorities to obtain $820 million, and the third review was completed at the end of July.
During the press conference, Georgieva affirmed Egypt’s commitment to the economic reforms requested by the Fund, the most important of which are “the transition to a flexible exchange rate system, increasing the role of the private sector as a source of growth and job opportunities, and enhancing social protection by moving away from untargeted support.”
In her speech, Georgieva praised “the wonderful strength demonstrated by (the Egyptian people) at a particularly difficult time in this region,” noting that the Fund “appreciates our partnership and the strength of our support for Egypt for its stability and economic development.”
She continued, “We showed this support in April when we made the decision to increase the size of our program from $3 to $8 billion, realizing how conditions have become more difficult not because of any fault on your part, but because of the conflict in your region.”
Last month, Egyptian President Abdel Fattah El-Sisi confirmed that his government may have to review its agreement with the International Monetary Fund if it led to pressure that “public opinion cannot bear” due to the challenges resulting from the current regional situation, in reference to the war in Gaza that has been going on for more than a year. .
Sisi said last month that Egypt had lost “6 or 7 billion dollars” during the last ten months, due to the decrease in Suez Canal revenues.
On Sunday, Sisi received Georgieva, where he affirmed “Egypt’s aspiration to complete cooperation with the Fund during the coming period,” according to what was stated in a statement by the Egyptian presidency.
During the meeting, Sisi stressed that “the state’s priority is to reduce the pressures and burdens on citizens, especially by combating inflation and rising prices.”
Despite the pressures that Egyptians face due to the increasing rise in the cost of living, Georgieva said during the press conference with Madbouly that the reform measures “are showing results.”
She explained, “Growth is on the rise. For the fiscal year 2025, we expect 4.2 percent compared to 2.4 percent in the previous year.”
She added, “Inflation is trending downward. It peaked at 37 percent last year. Now it is about 25-26 percent…but it is heading downward to about 16-17 percent by the end of the fiscal year.”
She concluded her speech by saying, “My message to you is that I am fully confident that you will see the benefits of these reforms in a more dynamic and prosperous Egyptian economy.”
