IMF welcomes Egypt's announcement of selling stakes in state-owned entities worth $1.9 bn

Julie Kozack, the IMF spokesperson, announced the fund's support for the Egyptian government's declaration of signing contracts to sell stakes in state-owned entities worth $1.9 bn. She affirmed that these measures are a crucial element in the Extended Fund Facility (EFF) program and a significant step towards supporting and providing resources for external financing and debt reduction.

During the press conference held at the IMF headquarters in Washington, Julie Kozack emphasized the continued collaboration with the Egyptian government to pave the way for the completion of the first review of the Extended Fund Facility.

This includes the steady implementation of the state's strategy to divest its shares in state-owned entities and the adoption of policies that promote a competitive environment for the private sector. These actions aim to enhance equal opportunities and move sustainably towards a flexible exchange rate to alleviate foreign currency shortages, as reported by the Middle East News Agency.

She further explained that the Egyptian government's announcement of the aforementioned measures represents a significant progress in implementing a fundamental component of the comprehensive policy package aimed at restoring macroeconomic stability.

It is worth mentioning that on December 16, 2022, the Executive Board of IMF approved financial facilities amounting to approximately $3 bn to support Egypt's reform program. The program targets addressing economic vulnerabilities, strengthening the social safety net, promoting sustainable and inclusive growth, and creating job opportunities.

The Executive Board of IMF had previously approved, in mid-December last year, a 46-month arrangement under the Extended Fund Facility (EFF) for Egypt, with a value of  $3 bn, equivalent to 2,350.17 mn Special Drawing Rights units.