The report stated that the fund did not ask the Egyptian government to reduce spending on subsidies, adding that the new program aims to strengthen the social protection network for citizens.
On Friday, the Executive Board of the International Monetary Fund approved a financial support package for Egypt worth three billion dollars for a period of 46 months, and said it would stimulate additional financing of about $14 billion.
In a background document on Egypt, the IMF said the new program will cover some of the funding gap resulting from the country’s foreign currency shortage, adding that Cairo has secured $5 billion in new financing for the fiscal year ending in June 2023.
The IMF indicated that its program aims to support the plans put in place by the authorities to reduce the influence of the state on the economy, increase transparency about state-owned companies, and create a work field that enjoys equal opportunities for all actors in the economy.
The Egyptian Cabinet said in a press statement that the agreement, which was approved by the fund’s board of directors and the accompanying financing, will allow the Egyptian authorities to obtain an additional external financing package through a variety of international and regional institutions, as well as through global financial markets.
And the Egyptian government approved, according to the statement, a social protection package at an annual cost of approximately 70 billion pounds ($2.84 billion), represented by approving an additional allowance of 300 pounds per month for all workers in state agencies and agencies and for pensioners, who amount to about 10 million pensioners, and increasing the limit. The minimum wage for state workers was increased by about 11 percent, to reach 3,000 pounds per month ($121), and the income tax exemption limit for all wage earners was increased by about 25 percent to ensure an increase in monthly income, at rates that increase for those with lower incomes.
The government also announced, earlier, the extension of the period for benefiting from the additional monthly increase decided for the ration card holders until the end of the current fiscal year ending in June 2023, to provide them with additional cash support that guarantees the ability to provide the basic needs of their families, and a decision was also taken to stabilize electricity prices for citizens. Without any amendment until the end of the year 2022-2023, in addition to announcing the provision of support to a number of companies and business owners in exchange for preserving employment to ensure the stability of living conditions for the largest number of citizens.
#Egyptian #Cabinet #agreement #IMF #aims #reduce #government #debt