IMF Managing Director Lagarde Paises Egypt’s ‘Ambitious Economic Reform’

Jan 26, 2019

CAIRO – 26 January: On the eighth anniversary of Egypt’s 25 January Revolution, and in an attempt to applaud the patience and commitment of the Egyptian people in light of Egypt’s “ambitious economic reform”, Christine Lagarde, Managing Director of the International Monetary Fund (IMF) issued a statement  on the progress of Egypt’s economic reform program.

The statement was released on the IMF’s website, Managing Director Lagarde accentuated the growth and achievements of Egypt’s economic reform to date, reiterated the IMF’s continued support of Egypt, and  illustrated the international organisation’s faith in the country’s economy to recover and blossom.

Lagarde began her statement by narrating the embarkment of the Egyptian economic reform program in 2016. “Egypt has made substantial progress as evident in the success achieved in macroeconomic stabilisation. Its growth rate is now among the highest in the region, the budget deficit is on a declining trajectory, and inflation is on track to reach the Central Bank of Egypt’s target by the end of 2019. Unemployment has declined to around 10 percent, which is the lowest since 2011, and social protection measures have been expanded.”

Lagarde stressed that it is crucial to persist the economic reform program to ensure continued growth and higher living standards.

“It is important to build on the progress achieved thus far and to press ahead with structural reforms that facilitate private sector-led growth and job creation, as well as measures to increase transparency and accountability that help improve governance. This will help attain higher and more inclusive growth and will ensure better living standards for all Egyptians.”

Furthermore, Lagarde stated that the IMF had finalised the details required to present a fourth review for Egypt’s Extended Fund Facility, which is supported by a total of $US 12 billion from the IMF. The fourth review would make available $US 2 billion, bringing total disbursements under the Extended Fund Facility to date to $US 10 billion.

Managing Director Lagarde declared that she will recommend the IMF’s Executive Board approve the fourth review, releasing the $US 2 billion to Egypt. Lagarde added that the reform process will pave the way for greater economic growth.

“The IMF staff team has now finalized the details required to present the fourth review for Egypt’s Extended Fund Facility arrangement to the IMF’s Executive Board. The Board will meet in the coming weeks to discuss the review and I will recommend that the Board approve the review.

“I would like to take this opportunity to commend the patience and commitment of the Egyptian people to the reform process. This will pave the way for higher and more inclusive growth for the long term, and I reiterate that the Fund stands ready to help achieve a more prosperous future for Egypt.”