IMF in final stages to complete Egypt’s loan program reviews: Georgieva

PHOTO

The International Monetary Fund (IMF) has reached the final stages to complete the first and second reviews of Egypt’s $3 billion loan program “within a few weeks”, the IMF’s Managing Director Kristalina Georgieva told Asharq Business on the sidelines of the World Governments Summit in Dubai.

Georgieva revealed that the anticipated increase in funding under the IMF’s support program to Egypt will be of “mega size,” adding that the IMF had already spotted the financing gap in Egypt and will announce it after concluding the negotiations.

She pointed out that Egypt needs to schedule the ongoing projects, saying that the situation in Gaza weighs on the country’s initial public offering (IPO) program.

Thus, the Egyptian government should not rush to sell shares in state-owned firms amid the current conditions, Georgieva stated.

However, Egyptian policymakers have to focus on inflation, she said, noting that a flexible EGP exchange rate is needed to absorb shocks.

In another interview with Al Arabiya Business, the IMF’s managing director said that numerous exchange rates for the EGP is “disastrous” and the exchange rate should be determined by the official market.