Press Release No. 22/354

Statement by the IMF Spokesperson on Egypt

October 15, 2022

Washington, DC: Mr. Gerry Rice, Director of Communications at the International Monetary Fund (IMF), issued the following statement today on Egypt:

“IMF staff and the Egyptian authorities have held very productive in-person discussions on the margins of the IMF and World Bank Annual Meetings and made substantial progress on all policies including the following:

“A continued fiscal consolidation path that will safeguard public debt sustainability and ensure a steady decline of the debt-to-GDP ratio over the medium term. Additional fiscal and related structural policies that would further expand the social safety net for the most vulnerable, improve the budget composition, and enhance fiscal transparency.

“Monetary and exchange rate policies that would anchor inflation expectations, improve monetary policy transmission, improve the functioning of the foreign exchange market, and bolster Egypt’s external resilience. This would enable Egypt to gradually and sustainably rebuild foreign reserves.

“The implementation of the authorities’ comprehensive structural reform agenda would gradually enhance the competitiveness of the economy, reduce the role of the state in the economy, level the playing field for the private sector, improve the business climate, and foster transition towards a greener economy.

“IMF staff and the Egyptian authorities have agreed to finalize their work to reach a Staff-Level Agreement very soon."