IMF approves USD 820 mln Egypt loan

WASHINGTON, The Executive Board of the International Monetary Fund (IMF) completed the third review of Egypt's EFF arrangement, which enables Egypt to immediately draw about USD 820 million. IMF said in a statement on Monday that the macroeconomic conditions in Egypt have started to improve since the approval of the combined first and second reviews of the program in March. It added that the Inflationary pressures are gradually abating, foreign exchange shortages have been eliminated, and fiscal targets (including related to spending by large infrastructure projects) were met. "These improvements are beginning to have a positive effect on investor confidence and private sector sentiment, while the difficult regional environment generated by the conflict in Gaza and Israel and tensions in the Red Sea, as well as domestic policy and structural challenges, call for continued implementation of program commitments," the IMF added. The IMF called for maintaining a flexible exchange rate regime and a liberalized foreign exchange system to avoid a buildup of external imbalances, in addition to having a data-driven approach by the Central Bank to lower inflation and inflation expectations. It added that the ongoing fiscal consolidation efforts would help place public debt on a decisive downward path. Egypt announced last Thursday a 15 percent increase in petrol prices as part of a reform package requested by the IMF. Source: Kuwait News Agency