The Monetary Fund: Continuing discussions with Egypt before the start of the first review of the reform program The International Monetary Fund said in a statement on Sunday that its discussions with Egypt will continue virtually before the start of the first review of the Egyptian reform program. The statement described the discussions between the IMF and Egypt in preparation for the review as "productive". Sources also reported that the IMF is waiting for Egypt to implement more of the wide-ranging reforms it has pledged before conducting the first review of a $3 billion bailout program. And the Director of the Middle East and Central Asia Department at the International Monetary Fund, Jihad Azour, said a few days ago, "We are in regular dialogue with the authorities in order to prepare for the initial review, and preparations have begun for it, and when we and the authorities are ready, we will announce its date." He added that among the priorities for Egypt to adopt: Flexible exchange rate. Reducing inflation by using monetary policy tools, especially interest rates. Opening up more space for the private sector through equal opportunities with government companies. Last December, the Fund approved the $3 billion " Extended Fund Facility " loan to Egypt, which has been under severe financial pressure since the war in Ukraine, whose repercussions revealed long-term problems. The disbursement of the package within the framework of the 46-month program is subject to 8 reviews, the first of which was March 15, 2023, according to the fund’s experts’ report published last December. The official exchange rate for the Egyptian pound has remained almost unchanged for more than a month at about 30.93 pounds per dollar, despite the Central Bank's promise last October to allow supply and demand to determine its price. What is the purpose of the Extended Fund Facility? The Extended Fund Facility was established to assist members with large payment imbalances due to structural impediments, or with slow growth and a fundamentally weak balance of payments position. The Extended Fund Facility supports efforts to implement comprehensive programs of policies that have the scope and mandate to correct structural imbalances over an extended period. According to the IMF, the "Extended Fund Facility" is expected to encourage the provision of additional financing for Egypt in the amount of $14 billion from its international and regional partners.

The International Monetary Fund said on Sunday that its talks with Egypt will continue hypothetically before the start of the first review of the Egyptian reform program, while it is waiting for Cairo to implement more of the reforms it has pledged.

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