Egypt's new IMF deal aims to reduce government debt: cabinet

Egypt’s new IMF deal aims to reduce government debt: cabinet

0 minutes, 57 seconds Read

In a background document on Egypt, the IMF said the new program would finance some of the country’s foreign currency financing gap, and that Cairo had secured $5 billion in new financing for the fiscal year ending in June 2023.

Of that, $2 billion will come from the sale of equity in private sector companies and $3 billion from multilateral support, apart from rollovers of deposits by Gulf countries to Egypt’s central bank.

Economists say one of the reasons Egypt has struggled to attract investment, despite repeated IMF programs and reform plans, is the dominant role of the state and military in the economy, and the higher share of state-owned firms compared to private-sector firms. Ownership Enterprises (SOEs) have benefits.

The IMF’s background document states that its program is aimed at supporting plans by Egypt to reduce the state’s footprint in the economy, increase transparency around SOEs, and create a level-playing field for all economic actors.

A statement from Egypt’s cabinet said on Saturday that the government is working fast to release a political document outlining the economic sectors the kingdom will withdraw from. It said the cabinet approved a final draft on November 30.

129 Total Views 1 Views Today
Spread the love

Similar Posts