The revamped privatization program is around the corner: Investment Minister Hassan El Khatib will unveil the revamped privatization program before the end of the month, Prime Minister Moustafa Madbouly told journalists following his weekly presser (watch, runtime: 20:23) yesterday without elaborating any further.

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Remember: Bloomberg quoted Madbouly in late October saying that his government will be taking another look at its plan to sell off stakes in state-owned companies and assets, and that the sectors and sizes of the stakes of offered companies may be re-evaluated.

Prepare for constant reviews: Madbouly had also said that “current circumstances require us to review it continuously,” rather than once every three years per the policy’s initial guidelines.

We have a rough idea of how the revamped program will operate: El Khatib told us in September at the EnterpriseAM Finance Forum that he’s “not fixated on privatization,” explaining that he instead approaches the topic as “an investor.” El Khatib explained that instead of selling assets quickly and cheaply, “I want to talk about maximizing their value and the returns we get for them, move them to a sovereign wealth fund, have them be run by the private sector, and monetize them to generate more value.”

ON ANOTHER NOTE- Could we get some more time to implement the IMF’s reforms? Egyptian officials and the International Monetary Fund mission in town for the long-awaited fourth review are in discussions over how they can extend the timeline of implementing some of the reforms previously agreed upon with the Fund, Madbouly said. “A very large part of our discussions with the Fund revolve around how we can postpone some of the targets so that we do not put pressure on the citizens in the coming period,” he said.

Remember: President Abdel Fattah El Sisi last month stated that the country might need to revisit the IMF agreement in light of the economic pressures the country is facing as it undergoes agreed-upon reforms. The IMF has expressed willingness to revisit the terms of the agreement, with IMF managing director Kristalina Georgieva saying last week that the Fund has “been very open to adjust the Egyptian program or any other program to what is best to serve people.”

IMF showed a flexible attitude: Madbouly highlighted that Georgieva showed understanding of the economic situation and has directed the mission in charge of the fourth loan review to maintain an open dialogue with the government on the best way to implement these updated targets. “The original targets were agreed upon during different economic conditions, which did not anticipate the current regional crisis,” Madbouly explained.

The EGP is a “truly flexible” currency, Madbouly said, adding that Georgieva applauded Egypt’s commitment to a flexible exchange rate. His comments follow recent reports that investors have been pressing the IMF for an explanation regarding the EGP’s stability amid regional shocks and in light of Egypt’s pledges to maintain a flexible exchange rate.

ICYMI- The USD has been rising against the EGP throughout the week, starting the week at EGP 49.10 is now exchanging hands at up to EGP 49.30.

Tags: