IMF chief says Egypt review may happen before the end of 2023

The International Monetary Fund is “closely” engaging with the Egyptian authorities to achieve the much-delayed review of Egypt’s progress in meeting the IMF’s terms, the managing director of IMF said.

“There has been quite a lot of progress. For example, bringing more private capital in areas where state-owned enterprises may not be the best way to handle the economic objectives,” Kristalina Georgieva said.

“There is still some work to be done on the question of how best to allow the exchange rate to move.”

She also hinted at possibly completing the review by the end of 2023.

“We are very keen to see progress on the review as quickly as we can resolve the remaining issues. And yes, it is possible to have the review done within this year,” Georgieva said.

Last month, Egypt said it had agreed with the IMF to merge the fund’s first and second review of its economic reform program after the first review was continuously delayed amid questions over Cairo’s progress in meeting the IMF’s terms.

The IMF in December approved a $3 billion Extended Fund Facility loan for Egypt, which is under immense pressure to turn around its economic crisis worsened by Russia’s invasion of Ukraine and is experiencing its worst foreign-currency crunch and highest inflation in years.

Egyptian authorities promised to adopt a flexible exchange rate when it reached the loan agreement but the official rate has remained almost unchanged for almost six months at around 30.93 dollar.