Madbouly touches on IMF reviews, Ramses fire, and Old Rent Law during latest presser: Prime Minister Moustafa Madbouly held his weekly presser (watch, runtime: 1:15:02) last night, where he covered the delayed fifth review of our IMF program, the Ramses fire, and the recently-passed amendments to the Old Rent Law.

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#1- The reason behind our delayed fifth review: The IMF decided to merge its fifth and sixth reviews of our USD 8 bn extended facility after we fell short on privatization targets due to regional geopolitical tensions, Madbouly said. Egypt met all other IMF program targets — including the primary surplus, FX reserves, currency flexibility, and limiting public spending — apart from divestment.

REMEMBER- The IMF will combine the fifth and sixth reviews of our USD 8 bn Extended Fund Facility Arrangement, IMF Communications Director Julie Kozack said last week. A combined review also means a delayed review, which the Fund now expects to take place in the fall — along with the USD 1.3 bn tranche that the government had been expecting to land in state coffers this month.

Why haven’t our divestment targets been met? “There was a specific amount of offerings we had aimed to complete by now. However, due to geopolitical tension in the region and its impact on the investment climate, we decided that moving forward with offerings at the moment would not achieve their fair value,” Madbouly said. “The priority is not merely meeting targets but ensuring that the state’s assets are utilized to their fullest potential and securing their fair value for Egypt.”

#2- Implementing the changes to the Old Rent Law: The cabinet held its first meeting to discuss implementing the amended Old Rent Law, according to Madbouly. The Housing Ministry is working on the mechanisms to protect current tenants. A unified electronic platform will launch within a month to register tenant data to gauge the need for state housing — tenants will have three months to register.

ICYMI- The House gave its final approval to the controversial amendments to overhaul decades-old rent law earlier this month. The law sets a seven-year transitional period for residential units and five years for non-residential units rented by individuals. After the transition, tenants must vacate the property, with all old rent regulations scrapped at the end of the period.

#3- No plans to sell Rameses Central: Madbouly dismissed rumors that the government plans to sell off the Ramses data center after it caught fire earlier this week.

#4- Reducing road accidents is a priority: Despite Egypt ranking 18 globally when it comes to road quality, accident rates remain above global averages, Madbouly said. The cabinet has tasked relevant ministries with preparing an executive plan to reduce national road accident rates below global averages.

ICYMI- Road safety has been high on the state’s agenda after two fatal crashes that claimed the lives of 28 people triggered public anger over road conditions.

#5- Ethiopia wants to resume GERD discussions: Madbouly confirmed that Ethiopia wants to resume negotiations over the Grand Ethiopian Renaissance Dam (GERD). “We asked them to sign a document that turns recent statements into a written commitment,” he said.

#6- Xi could visit Egypt later this year: Egypt is looking forward to a potential visit from Chinese President Xi Jinping later this year. “One of the goals of the Chinese Premier’s current visit is to prepare for this important visit,” he said.

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