The International Monetary Fund’s (IMF) new loan package agreement with Egypt will strengthen international institutions’ confidence in the national economy, said chairman of the Egyptian African Businessmen Association (EABA) on Sunday.
Yousrey El Sharkawi further told Amwal Al Ghad the agreement delivers a reassuring message for foreign partners on increasing their investments in Egypt given its IMF-hailed economic and legislative reforms.
El Sharkawi expressed his hope that the IMF would manage to catalyse additional financing of about $14 billion from Egypt’s international and regional partners.
There are five measures needed to attract
The Egyptian official outlined five measures to boost direct foreign investments and boost cash inflows;
Firstly, to reset a vision for the Egyptian economy in the light of internal and external shocks;
Secondly, to rationalise expenses and consumption;
Thirdly, exploring urgent solutions to eliminate bureaucracy;
Fourthly, carrying out administrative restructuring plans to encourage investors;
Fifthly, meeting with private sectors officials to set a new vision for alluring direct foreign investments.
On Friday, IMF board approved a 46-month $3 billion financial support package for Egypt.
“Egypt’s IMF-supported programme presents a comprehensive policy package to preserve macroeconomic stability, restore buffers, and pave the way for inclusive and private-sector-led growth.” the IMF added in a statement.
Over the course of the programme, the IMF said it will catalyse additional financing of about $14 billion from Egypt’s international and regional partners.
