An International Monetary Fund (IMF) team led by Ivanna Vladkova Hollar made “excellent progress” on discussions with Egyptian authorities regarding the first and second reviews of the country’s economic reform program, according to a statement released early Friday.
The mission, which took place from January 17 to February 1, focused on reaching a Staff Level Agreement (SLA) for the combined reviews supported by the IMF’s Extended Fund Facility (EFF).
“The IMF team and the Egyptian authorities have agreed on the main policy elements of the program,” said Vladkova Hollar in the statement. “The authorities expressed a strong commitment to act promptly on all critical aspects of Egypt’s economic reform program.”
Both sides also emphasized the importance of strengthening social spending to protect vulnerable groups, “particularly low and middle-income households that have been hit hard by rising prices,” the statement added.
Virtual discussions will continue in the coming days to finalize the Memorandum of Economic and Financial Policies (MEFP) and determine the extent of additional support needed from the IMF and other partners to address Egypt’s increased financing gaps due to recent economic shocks.
The mission concluded by thanking the Egyptian authorities for their “warm hospitality and constructive dialogue.”
