Back to the complete issue
Sunday, 12 July 2020

IMF mission chief praises Egypt for resilience-enhancing reforms, plans for crisis spending and post-covid recovery

IMF mission chief praises Egypt for resilience-enhancing reforms, plans for crisis spending and post-covid recovery: Egypt has taken a “proactive” approach to limiting the economic fallout from the covid-19 pandemic by seeking assistance from the multilateral lender through a two-part USD 8 bn financing package, IMF Egypt mission chief Uma Ramakrishnan said. The funding — which includes a USD 2.8 bn Rapid Financing Instrument and another USD 5.2 bn, 12-month standby loan — allowed the government to both address immediate spending needs to address the outbreak and avoid undoing progress made under its previous reform program, Ramakrishnan said. This approach will also help the country “further advance structural reforms to position Egypt for sustained recovery,” particularly as the program helped to increase Egypt’s resilience and weather the crisis.

“The government’s goal is to place Egypt on a strong footing for recovery,” she said. While state spending on healthcare and social safety nets has increased since the onset of the pandemic, the government is wary of becoming encumbered with debt down the line. The Finance Ministry is currently reworking its debt strategy — which it began implementing in March 2019 and entails moving towards longer-term debt and imposing a cap on eurobond issuances, among other things — according to Ramakrishnan.

Egypt is also committing to greater transparency in its crisis spending, Ramakrishnan said. To that end, the government will publish the details of its spending during the crisis on the Finance Ministry website and will also disclose procurement contract details.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.