S\u00e3o Paulo \u2013 The International Monetary Fund (IMF) announced on Tuesday (25) the release of USD 1.6 billion in loans to Egypt and reaffirmed the country\u2019s solid economic prospects. According to the organization, the Egyptian economy is expected to grow by 2.8% in the 2020\/2021 fiscal year, ending in June, and by 5.2% in the following fiscal year, 2021\/2022.<\/p>\n
With the deliverance of the current amount, the IMF announces the conclusion of the Stand-by Agreement (SBA) program with the country, with the total amount of USD 5.2 billion, according to information from the organization reproduced by the Egyptian newspaper Al Ahram<\/a>. After a virtual mission this month, in which the second review of the IMF program with Egypt with local authorities was carried out, the decision was made by the fund\u2019s staff team led by Celine Allard.<\/p>\n According to Allard, the strong performance and commitment of the Egyptian authorities helped to achieve the program\u2019s goals of maintaining the Arab country\u2019s macroeconomic stability during the pandemic last year. The necessary social and health expenditures have been protected, and significant structural reforms were implemented locally. The accumulation of net international reserves, for example, exceeded the program\u2019s goals.<\/p>\n The IMF cited advancements in reforms related to fiscal transparency and governance, social protection, and improving the business environment, in addition to efforts aimed at reducing debt vulnerabilities and creating budgetary space for priority spending. Allard praised the publication of spending information regarding the COVID-19 crisis.<\/p>\n The IMF says the Egyptian economy shows resilience. \u201cHowever, uncertainty remains in the background, with persistent risks related to the pandemic. Policies are appropriately focused on supporting the recovery in the short term while deepening and expanding structural reforms to unlock Egypt\u2019s enormous growth potential in the medium term,\u201d explained Allard.<\/p>\n Read more about Egypt:<\/p>\n The team leader stated that the monetary policy of the Central Bank of Egypt (CBE) remains dependent on data; however, the IMF welcomes the CBE\u2019s readiness to act as needed to support economic recovery amid quiet inflation. She added that the continued flexibility of the exchange rate would help to absorb external impacts. For Allard, Egypt\u2019s banking system remains liquid, profitable, and well-capitalized.<\/p>\n Allard said that the fiscal year 2021\/2022 aims at a gradual consolidation so that it is possible to uphold the economic recovery, safeguarding budgetary sustainability. For the IMF, the continued shift towards more significant investment in infrastructure, health, and education in the next fiscal year is welcome in Egypt.<\/p>\n \u201cThe government is committed to returning to a primary surplus of 2% of the Gross Domestic Product (GDP) as of the fiscal year 2022\/23, and as the economic recovery takes place, it will be essential to reduce public debt and support fiscal sustainability,\u201d highlighted the IMF staff member.<\/p>\n Translated by El\u00fasio Brasileiro<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" The International Monetary Fund announced the deliverance of USD 1.6 billion to the country, concluding a USD 5.2 billion agreement. The organization reemphasized the sound prospects for the Egyptian economy, expected to grow 2.8% in the current fiscal year and 5.2% in the next.<\/p>\n","protected":false},"author":2316,"featured_media":293424,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[114],"tags":[9803,21069,21062,18077,26760,21068,21063,21065,21066,21067,21064,28576,1988,4707],"class_list":{"0":"post-293429","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-egypt-en","9":"tag-celine-allard-en","10":"tag-celine-allard-imf","11":"tag-covid-egypt","12":"tag-egito-en-2","13":"tag-egypt-gdp","14":"tag-egypt-growth","15":"tag-egypt-imf","16":"tag-egypt-inflation","17":"tag-egypt-opportunities","18":"tag-egyptian-economy","19":"tag-fmi-en-2","20":"tag-imf","21":"tag-loan"},"wps_subtitle":"The International Monetary Fund announced the deliverance of USD 1.6 billion to the country, concluding a USD 5.2 billion agreement. The organization reemphasized the sound prospects for the Egyptian economy, expected to grow 2.8% in the current fiscal year and 5.2% in the next.","_links":{"self":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/293429","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/users\/2316"}],"replies":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/comments?post=293429"}],"version-history":[{"count":0,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/293429\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media\/293424"}],"wp:attachment":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media?parent=293429"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/categories?post=293429"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/tags?post=293429"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n