IMF’s Georgieva hints new financial package deal with Egypt is ‘close’

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The Managing Director of the International Monetary Fund (IMF) Kristina Georgieva has signaled that a new financial package for Egypt is on the way of being finalized, Bloomberg reported.

"We are in this very last stretch, where we are working on the details of implementation,” she said during a briefing in Washington.

“We are very close; we are not talking about a long protracted period at all," Georgieva added.

Emphasizing the significance of the talks, Georgieva highlighted that they are a "top priority" for the IMF due to Egypt's crucial role in the broader region.

A team led by IMF's Research Analyst for the Middle East and Central Asia Ivanna Vladkova Hollar visited Egypt from January 17th to February 1st to hold talks aimed at concluding the first and second reviews of Egypt's reform program, which is financed by the IMF's Extended Fund Facility (EFF).

Hollar announced that the main policy components of the program have been agreed upon by the IMF team and the Egyptian authorities.

“The IMF team and the Egyptian authorities also agreed on the critical importance of strengthening social spending to protect vulnerable groups. This is important to ensure adequate living conditions for low and middle-income households that have been hit particularly hard by rising prices,” Hollar highlighted.

The IMF recently lowered its forecast for Egypt’s real gross domestic product (GDP) for the current fiscal year (FY) 2023/2024 to 3% from a previous outlook of 3.6%.