Egypt: International Monetary Fund (IMF) Reaches Staff-Level Agreement on an Extended Fund Facility Arrangement

Egypt: International Monetary Fund (IMF) Reaches Staff-Level Agreement on an Extended Fund Facility Arrangement

International Monetary Fund (IMF) staff and the Egyptian authorities have reached a staff-level agreement on comprehensive economic policies and reforms to be supported by a 46-month Extended Fund Facility (EFF) Arrangement of US$3 billion; The new EFF aims to safeguard macroeconomic stability and debt sustainability, improve Egypt’s resilience to external shocks, strengthen the social safety net, and step-up reforms that underpin higher private-sector-led growth and job creation; The IMF arrangement is expected to catalyze a large multi-year financing package, including about US$ 5 billion in FY2022/23, that reflects broad international and regional support for Egypt; The Egyptian authorities have also requested financing under the newly created Resilience and Sustainability Facility (RSF), which could unlock up to an additional US$1 billion for Egypt.

An International Monetary Fund (IMF) team, led by Ivanna Vladkova Hollar, Mission Chief for Egypt, held meetings in Washington DC and Cairo during October 4-27, 2022 to finalize discussions on IMF support for Egypt and the authorities’ comprehensive economic reform program. At the end of the discussions, Ms. Vladkova Hollar issued the following statement:

“We are happy to announce that the Egyptian authorities and the IMF team have reached a staff-level agreement on the economic policies to be supported by