“IMF’s SBA programme for Egypt achieved its goal, final review to be completed in May”, says IMF official

The International Monetary Fund (IMF) is set to conduct its second and final review of Egypt’s 12-month stand-by agreement (SBA) programme, according to t he IMF’s director of the Middle East and Central Asia Department (MCD) Jihad Azour.

The IMF approved a $5.2 billion loan for the country in June to finance Egypt’s second phase of economic reforms,

Azour unveiled to Ahram Online that the final review is expected to be completed by May with a projected third tranche worth $1.6 billion to be handed to Egypt.

The IMF-$12 billion-backed reform programme that Egypt implemented in 2016 has resulted in improving the country’s public finance performance and increasing the treasury revenues through the tax reforms it adopts.

It also managed to attain an initial surplus and to re-prioritize its spending, which are a key objectives of the programme, according to Azour.

He noted that Egypt keeps going in such a path and it is working on new procedures and policies for the sake of boosting tax revenues going forward, which is a key pillar in attaining its required economic growth through enhancing revenues.

“It is imperative for Egypt to set the balance between supporting the economic recovery and keeping the current stability levels, which is the path to maintain the low interest rate levels and benefit more from the international financial inflows”, said Azour.

During 2020, Egypt received two tranches under the SBA programme loan worth $3.6 billion.

“The SBA programme has achieved its goals in Egypt, contributing to the country’s returning back to the global financial markets, keeping good economic growth levels, as well as the return of capital flows. It also completed the government’s economic reforms and helping the country to address one of the hardest crises that the Egyptian economy has experienced in decades”, Azour illustrated.