IMF: Egypt's Fourth Review in mid-September Includes $1.3 Billion Disbursement

The head of the International Monetary Fund mission to Egypt (IMF) Ivana Vladkova Hollar said that the fourth review under the fund's extended facility for Egypt will be conducted between September and December 2024, allowing the authorities to withdraw about 922.8 million special drawing rights (about $1.3 billion).

Hollar added - in statements on Tuesday - that implementing the "state ownership policy" is a necessary step to enhance the role of the private sector, but it is one building block in building an integrated economic structure.

She pointed out the importance of creating a fair economic climate that enhances competition, allowing private companies to compete freely with government companies, noting that the program implemented by the Egyptian government included measures to facilitate customs procedures and trade, in response to the demands of the private sector, and "we will continue to study more measures that would enhance its contribution to economic growth.

Hollar noted that despite the efforts made, inflation remains a major challenge, which requires policies that go beyond economic dimensions to include social impacts.

She continued: "The continuous rise in the cost of living for 18 months reveals the need for targeted measures that ease the burden on the most affected groups. Previous experiences have shown that fuel subsidies often go to the pockets of the wealthy. Therefore, eliminating these subsidies and shifting resources to more targeted support programs will contribute to achieving social justice and alleviating the severity of living crises." 

It is worth noting that the Executive Board of the International Monetary Fund completed yesterday the third review under the extended extended facility for Egypt, which allows the government to withdraw the equivalent of about $820 million.