IMF Poised To Approve Egypt Loan

The IMF Executive Board looks set to approve its $12bn loan facility to Egypt at its meeting on 11 November, as MEES went to press, following the favorable recommendation by its Managing Director Christine Lagarde.

“Over the past few months, the Egyptian authorities have embarked on an ambitious reform program to put the country’s economy on a more sustainable path and achieve job-rich growth…I will recommend that the board approve Egypt’s request in support of this ambitious reform program that will help restore macroeconomic stability and bring Egypt’s economy closer to its full potential,” she says.

The Central Bank of Egypt (CBE) last week devalued the Egyptian currency by 32% and allowed it to float. The government has also raised energy prices in line with the IMF-supported economic reforms aimed at reducing the budget deficit and public debt (MEES, 4 November). But the currency market has not stabilized since liberalization and the pound continued to drift lower touching $1=E£18 this week, around half pre-devaluation value, before strengthening slightly ahead of the IMF meeting. (CONTINUED - 793 WORDS)