Egypt needs to slow its reform project pace, in order to avoid damaging its macroeconomic stability, said the International Monetary Fund (IMF) Managing Director, Kristalina Georgieva on Thursday.
The IMF and Egypt have agreed on a program with three pillars; implementing a freer exchange rate, boosting the private sector and slowdown the long term investment projects, which are very important for Egypt.
“In the current tight environment, they could undermine macroeconomic stability with the speed that was that was originally designed under different circumstances, we have seen in Egypt a deeper understanding of how complex not only the domestic environment is, but also the regional and global environment,” Georgieva stated.
Egypt and the IMF are preparing to set a date to review the country’s $3 billion bailout package. This comes in light of the impact of the Russian war in Ukraine on the Egyptian economy, especially on the food sector, triggering major food and fuel price surges.
Egypt has devalued the pound three times since March 2022, in order to secure the IMF loan deal, while the IMF has said that the first review of the 46-month program is expected to be completed in March 2023.
