{"id":605723,"date":"2023-09-05T00:00:00","date_gmt":"2023-09-05T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/09\/05\/to-review-or-not-to-review\/"},"modified":"2023-09-05T00:00:00","modified_gmt":"2023-09-05T00:00:00","slug":"to-review-or-not-to-review","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/09\/05\/to-review-or-not-to-review\/","title":{"rendered":"To review or not to review?"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong> Are we on track for the September IMF review? <\/strong>There are conflicting signals from government officials regarding the IMF\u2019s anticipated review of our <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/c374319e-e849-44f6-bf5a-8179fb41caf5\" style=\"\" rel=\"noopener\">USD 3 bn loan<\/a> <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/c374319e-e849-44f6-bf5a-8179fb41caf5\" style=\"\" rel=\"noopener\">program<\/a>. An official at the Finance Ministry we talked to yesterday expressed optimism that the Fund will complete the review \u2014 scheduled for 15 September under the original agreement \u2014 on time, paving the way for the disbursement of the second and third loan tranches. <a target=\"_blank\" href=\"https:\/\/bit.ly\/45MTLF8\" style=\"\" rel=\"noopener\">Asharq Business<\/a> is less sanguine, quoting an unnamed source as telling it that it is unlikely the review will wrap up this month.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> The first review was originally <\/strong><strong> supposed to take place <\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/36adb057-8423-4f7e-a75a-e1c9c4a55433\" style=\"\" rel=\"noopener\">in mid-March<\/a><\/strong> but was postponed after we fell short on meeting several key conditions of the loan agreement. The IMF <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/7c21c86c-40a9-40f1-8e97-0dc7f259a895\" style=\"\" rel=\"noopener\">was reportedly<\/a> waiting for progress on the state asset sale program and the transition to a fully flexible exchange rate. The delay means that the IMF is expected to roll the first and second reviews into one when it next comes to Cairo, which would see the disbursement of almost USD 700 mn.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> No date has been set: <\/strong> Our source and Asharq\u2019s agree that the IMF has not yet set a date for the visit, but emphasized that the relationship is on a good footing and that the government is regularly following-up with Fund officials. The worst case scenario? We could be waiting until the end of the year before Fund officials arrive in town, according to Asharq\u2019s source.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> Gov\u2019t is moving in the right direction on some reforms: <\/strong>\u201cThe Fund is happy with recent government moves \u2014 investment incentives, updated privatization program, and efforts to boost FDI,\u201d our Finance Ministry source said. The Fund has publicly welcomed the government\u2019s recent decision to sell <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/1f59098e-47ac-42cc-964c-b84096549959\" style=\"\" rel=\"noopener\">USD 1.9 bn<\/a> of state-owned assets, a step towards fulfilling its privatization goals under the loan agreement. It also made moves to improve the investment environment for the private sector and level the playing field, such as making <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/936b39e5-5bac-4b19-a3f6-1931538ced39\" style=\"\" rel=\"noopener\">amendments to the investment law<\/a> and <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/fcd90ef5-04cc-44fd-9806-4df86804f8b2\" style=\"\" rel=\"noopener\">passing legislation to end tax exemptions<\/a> for some state-owned and military companies. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> The elephant in the room: What happens to the EGP? <\/strong> Transitioning to a fully-flexible exchange rate was one of the key conditions for the loan program and one of the factors that postponed the first review, leading to the widespread assumption that the first and second reviews would be dependent on a further devaluation of the EGP. The central bank has allowed the EGP to devalue by almost half against the greenback over the past 18 months, though the EGP-USD exchange rate has remained unchanged since March. <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/5ab95629-ba7e-4b1e-bcb2-64d1dcf28946\" style=\"\" rel=\"noopener\">President Abdel Fattah El Sisi suggested in June<\/a> that he would not allow the currency to further devalue if it came at the expense of the nation\u2019s citizens.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> But could privatization momentum persuade the IMF to look the other way (for now)? <\/strong> The latest update to privatization plans \u201cmay help the two sides reach an agreement and could push the IMF to postpone some of its other requirements,\u201d according to the source cited by Asharq Business. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The IMF postponed the first review of the USD 3 bn program in March after the government failed to meet several key conditions<\/p>\n","protected":false},"author":1,"featured_media":605724,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7206],"tags":[104,72,276,272],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-605723","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-economy","tag-enterpriseam","tag-finance-ministry","tag-imf","wpautop","entry"],"acf":{"mongo_id":"b5a8ca2c-babc-4c88-a225-be324950f8d3","order":"0","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/9\/139.jpg","photo_position":"above","homepage_title":"Will the IMF arrive in Cairo on 15 September?","full_issue_title":"Will the IMF arrive in Cairo on 15 September?","related_issue":[605718],"teaser":"The IMF postponed the first review of the USD 3 bn program in March after the government failed to meet several key conditions","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2023\/9\/.6da2a2e0-4ca8-4283-bb46-d5c8e26a78a8.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>To review or not to review? 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A positive review would unlock the final USD 1.6 bn tranche; Egypt received an initial USD 2 bn in\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/5\/93.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":576357,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/11\/22\/imf-gives-initial-approval-to-second-tranche-of-usd-5-2-bn-standby-loan\/","url_meta":{"origin":605723,"position":2},"title":"IMF gives initial approval to second tranche of USD 5.2 bn standby loan","author":"enterpriseam admin","date":"22 November 2020","format":false,"excerpt":"Egypt is on track to receive the second tranche of its USD 5.2 bn IMF standby loan after it reached a staff-level agreement with the fund following a review of the 12-month program, the IMF said in a statement. Some USD 1.6 bn will be paid out should the fund\u2019s\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/11\/222.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":562487,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/05\/26\/imf-gives-initial-approval-for-final-tranche-of-usd-5-2-bn-standby-loan\/","url_meta":{"origin":605723,"position":3},"title":"IMF gives initial approval for final tranche of USD 5.2 bn standby loan","author":"enterpriseam admin","date":"26 May 2021","format":false,"excerpt":"Egypt expects to unlock the third and final USD 1.6 bn tranche of its USD 5.2 bn IMF standby loan after reaching a staff-level agreement with the fund, the IMF said in a statement. An IMF delegation was (virtually) in townover the past two weeks for the second review of\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/5\/229.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":701734,"url":"https:\/\/enterpriseam.com\/egypt\/2026\/05\/13\/finmin-moved-egp-452-bn-to-egpc-weeks-before-imf-november-mission\/","url_meta":{"origin":605723,"position":4},"title":"Finmin moved EGP 452 bn to EGPC weeks before IMF November mission","author":"enterpriseam admin","date":"13 May 2026","format":false,"excerpt":"Driven by an urgent IMF mandate, the Finance Ministry is absorbing the circular debt to cap the sector\u2019s sovereign commitments and lure global energy giants back to the rig","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2026\/3\/146.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":593858,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/10\/13\/imf-out-with-final-review-of-egypts-reform-program\/","url_meta":{"origin":605723,"position":5},"title":"IMF out with final review of Egypt\u2019s reform program","author":"enterpriseam admin","date":"13 October 2019","format":false,"excerpt":"IMF out with final review of Egypt\u2019s reform program: The International Monetary Finance (IMF) released on Friday its fifth and final policy review of Egypt\u2019s economic reform program, which was conducted last July ahead of disbursing the final USD 2 bn tranche of the institution\u2019s USD 12 bn facility to\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/10\/153.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/605723","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=605723"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/605723\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/605718"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/605724"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=605723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=605723"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=605723"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=605723"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=605723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}