Maait: Egypt Proceeds Steadily in Implementing IMF Reform Programme

Finance Minister Mohamed Maait affirmed that Egypt is proceeding steadily in implementing the economic reform program in cooperation with the International Monetary Fund (IMF) through the completion of structural reforms agenda.

The minister added that that the programme is entended to give the private sector a bigger role to lead the engine of economic growth, provide more job opportunities and better services to citizens.

Maait pointed out the implementation of a comprehensive package of policies aimed at stabilizing macroeconomic performance indicators and expanding social protection, so that a primary surplus is maintained. In a way that contributes to reducing the deficit and debt rates of the GDP, and creates a financial space that enables us to absorb inflationary pressures resulting from the global economic crises.

"The Egyptian economy is not immune from regional and global economic developments and challenges, and we are dealing with more flexible and balanced policies," he said, according to a statement issued today, Sunday.

This came during his meetings with a number of representatives of the International Monetary Fund on the sidelines of the spring meetings of the International Monetary Fund and the World Bank in Washington.

He added that the Egyptian government has taken many measures and initiatives that stimulate the private sector and support production, including the "State Ownership Policy Document", which contributes to creating a more attractive environment for private investments with promising development opportunities with preferential advantages in priority sectors at the local, regional and international levels.

The minister pointed out that the budget for the next fiscal year meets the development and social priorities of citizens with ambitious targets, as we aim for the primary surplus to reach 2.5% of the gross domestic product, and to achieve a growth rate of 4.1% of the gross domestic product, within the framework of the state's keenness to maximize the efforts of the state. Financial discipline and enhancing the competitiveness of the Egyptian economy.

He explained that the positive indicators during the past fiscal year reflect the ability of the Egyptian economy to hold together in the face of global challenges and the subsequent pressures on state budgets, as Egypt recorded the highest growth rate since 2008 at 6.6%, and we succeeded in reducing the budget deficit rate of GDP to 6.1% by the end of the year. June 2022.

"We aim to reduce the debt-to-GDP ratio to 80% in 2026-2027, and reduce the average debt life to range from 4.5 to 5 years," he added.

The minister reaffirmed that the successive crises in the global economic arena require maximizing the concerted efforts of international institutions for a greater role in supporting emerging markets, which are finding great difficulty in bridging financing gaps and accessing international markets in light of the high cost of financing.

He explained that the Egyptian government has adopted a diversified financing strategy aimed at implementing several reforms to develop the local bond market. In a way that enables us to attract additional financial inflows, as Egypt has recently joined a series of global indices, including: the “FTSE Russell” emerging markets index, the “G. with me. Morgan, and J. with me. That is, for emerging markets.

He pointed out that investors' appetite for "green bonds", "Eurobonds", "Samurai" and "Sovereign Islamic Sukuk" reflects their confidence in the Egyptian economy.