cairo (wam)
The Egyptian government announced the approval of the Board of Directors of the “International Monetary Fund” on the program agreed upon between the executive management of the fund and the Egyptian state, represented by the “government and the Central Bank of Egypt” regarding the comprehensive Egyptian national economic reform program, which extends for a period of four years, which will be supported by the “fund International Monetary” by offering an extended credit facility to the Egyptian state.
A statement by the Egyptian Cabinet said today that the agreement 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. The agreement also enables the Egyptian state to apply for additional financing through the newly established IMF’s Resilience and Sustainability Fund.
The International Monetary Fund’s approval of the comprehensive national economic reform program represents an additional confirmation of the support of the international community and development partners for the Egyptian economic reform program. It also reflects confidence in Egypt’s capabilities to fulfill its international obligations and its ability to achieve the targeted economic growth rates.
The fund’s board of directors’ approval of the experts’ report, which was agreed upon with the Egyptian government and the Central Bank of Egypt last October, without any additional conditions or burdens, adds to the Egyptian economy a new certificate of confidence and also gives a positive signal to the domestic and foreign markets, and gives a strong impetus. To encourage investments, export and international trade with Egypt.
The Egyptian comprehensive and national economic reform program aims to enhance macroeconomic stability and ensure the sustainability of public debt in the medium term, and to work to enhance the Egyptian economy’s solidity, resilience, and ability to face external shocks, which have recently increased in severity and recurrence at the global level. The comprehensive national economic reform program for Egypt also includes An important axis linked to the strengthening of the social safety net in a way that guarantees effectiveness and targeting, in a way that achieves the greatest degree of protection for the vulnerable classes. The reform program also includes accelerating efforts to increase the competitiveness of the Egyptian economy by adopting an integrated and consistent package of policies, measures and structural reforms that would achieve a path to high growth. And the sustainable one driven by a greater role and contribution from the private sector, in a way that guarantees the creation of productive and sufficient job opportunities.
On the side of the reforms and measures related to the fiscal policy, the Egyptian government aims to work on the continuation of the efforts of fiscal discipline, represented in the continuation of achieving an annual first surplus in the general budget, and working to return the path of government indebtedness to the GDP in declining, reaching levels less than 80% of the GDP in the medium term. In addition to working to continue prolonging the life of government debt, diversifying funding sources, reducing the total financing needs for the budget, improving the efficiency of revenues and spending in the general budget, and working to increase spending on targeted social protection and all areas of human development.
The Egyptian government, through the Ministry of Finance, will also work to complete the implementation of the government’s medium-term revenue strategy, which aims to improve the efficiency, effectiveness, and fairness of the tax system. The Ministry of Finance also aims to quickly complete the activation of the unified finance law, which was approved recently, support efforts for sustainability and the green economy, and take policies and initiatives that help reduce the negative repercussions of climate change. The Ministry of Finance will also continue its efforts and plans related to enhancing transparency and financial disclosure efforts and involving all groups in the stages of preparing, implementing and following up the budget to ensure the achievement of the goal of the Participatory Budget Initiative.
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