{"id":655625,"date":"2024-11-21T00:00:00","date_gmt":"2024-11-21T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/11\/21\/imf-set-to-wrap-fourth-review-and-green-light-program-amendments-requested-by-egypt\/"},"modified":"2024-11-21T00:00:00","modified_gmt":"2024-11-21T00:00:00","slug":"imf-set-to-wrap-fourth-review-and-green-light-program-amendments-requested-by-egypt","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/11\/21\/imf-set-to-wrap-fourth-review-and-green-light-program-amendments-requested-by-egypt\/","title":{"rendered":"IMF set to wrap fourth review and green light program amendments requested by Egypt"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>Egypt\u2019s fourth IMF review is set to wrap by tomorrow<\/strong>, with only procedural stages left before the Fund\u2019s Executive Board formally greenlights the decision that <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/34a5b4ba-e7d0-46b6-a984-45db566a7c90\/imf-begins-its-fourth-review-of-egypt%E2%80%99s-usd-8-bn-program\" style=\"\" rel=\"noopener\">will unlock USD 1.3 bn<\/a> in financing, Prime Minister Moustafa Madbouly announced at his <a target=\"_blank\" href=\"https:\/\/www.facebook.com\/EgyptianCabinet\/posts\/1076512147852538?ref=embed_post\" style=\"\" rel=\"noopener\">weekly presser<\/a> yesterday. Madbouly pointed to significant progress made in many of the review\u2019s targets and added that Fund Executive Director Kristalina Georgieva had spoken positively about actions taken by the country. We will be keeping an eye out for when Egypt next pops up on the board\u2019s <a target=\"_blank\" href=\"https:\/\/www.imf.org\/en\/About\/executive-board\/EBC-Scheduled\" style=\"\" rel=\"noopener\">calendar<\/a> for the review\u2019s final thumbs up.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The IMF is striking a similar tone<\/strong>, stating that the two sides had made \u201csubstantial progress on policy discussions toward the completion of the fourth review\u201d in a <a target=\"_blank\" href=\"https:\/\/www.imf.org\/en\/News\/Articles\/2024\/11\/20\/pr-24429-egypt-imf-mission-concludes-visit-to-egypt-for-the-4th-review-under-the-eff\" style=\"\" rel=\"noopener\">statement<\/a> released yesterday announcing that the IMF\u2019s mission to Egypt had come to an end. The Fund\u2019s Egypt head Ivanna Hollar, however, suggested that there\u2019s still a little way to go before the review can be concluded as \u201cdiscussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review.\u201d <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>It looks we may be in line for more than just fresh funds<\/strong>, with the prime minister announcing that the IMF has amended some of the program\u2019s conditions. Madbouly did not detail the agreed-upon amendments, but noted that \u201cthere is a complete understanding of the Fund\u2019s mission regarding the requests of the Egyptian state\u201d and that the changes could even be extended throughout the entire course of the program.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>We\u2019re still yet to find out what the amendments actually are<\/strong>, but Madboly <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/5915c925-ff5d-404b-85af-3d657f921b3c\/government-to-unveil-revamped-privatization-program-before-december\" style=\"\" rel=\"noopener\">alluded to<\/a> ongoing negotiations with the Fund on \u201chow we can postpone some of the targets so that we do not put pressure on the citizens in the coming period\u201d in a previous presser.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The announcement follows news that the International Monetary Fund<\/strong> <strong>mission had <\/strong><strong>concluded its two-week visit to <\/strong><strong>Cairo<\/strong> and is expected to greenlight the fourth review of Egypt\u2019s loan program with the Fund, three government sources told EnterpriseAM earlier in the day. The sources mirrored Madbouly\u2019s comments and noted broad agreement that economic indicators are moving in the right direction, with structural reforms showing tangible progress despite a challenging external environment. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Thankfully, it seems that a fall in Suez Canal contributions were offset by gains <\/strong><strong>elsewhere<\/strong>, as although the Suez Canal Authority\u2019s contributions to the state coffers plummeted 92% y-o-y to EGP 1.0 bn in the first quarter of FY 2024-25, the shortfall was partially offset by a 108% surge in revenues from special funds and accounts bringing in EGP 4.4 bn, alongside higher contributions from state entities, according to one source. These gains \u2014 driven by the government\u2019s new <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/c7f9d4a1-9326-4fcc-a122-dfb01dc53a7a\/next-fiscal-year%25e2%2580%2599s-draft-state%253cmark%253e-budget%253c%2Fmark%253e-dominated-the-airwaves\" style=\"\" rel=\"noopener\">unified budget framework<\/a> \u2014 helped push the Finance Ministry\u2019s surplus to EGP 3.6 bn, up from EGP 2.6 bn during the same period last year, the sources said. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The sources noted a revenue surplus over four times higher than recorded in the same <\/strong><strong>period last year<\/strong>, driven by spending realignments, improved inter-agency coordination, and better management of due payments. These measures bolstered revenue-generating government entities and cut deficits. The sources also noted that tax revenue has grown an unprecedented 45% to reach EGP 413 bn in the first quarter of FY 2024-25, compared to EGP 285 bn in the same period last year.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The sources noted a positive shift in public debt management strategy<\/strong>, including a greater reliance on self-generated resources from various entities, which was highlighted as a key strength in reports submitted to the IMF mission. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Regarding exchange rate flexibility,<\/strong> one source told EnterpriseAM that the IMF mission\u2019s report noted the EGP had performed well throughout the past period. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The Fund made clear its priorities for the government going forwards<\/strong>, arguing that the \u201cfocus needs to remain on ensuring inflation is on a firm downward trend toward the medium-term target.\u201d The IMF also pointed to the need for \u201ccontinued fiscal discipline\u201d to further reduce public debt vulnerabilities and mutually agreed upon priorities of increasing domestic revenues, reducing fiscal risks \u2014 particularly in the energy sector, and strengthening the social safety apparatus. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The international press also took note of the story: <\/strong><a target=\"_blank\" href=\"https:\/\/www.reuters.com\/world\/africa\/imf-mission-concludes-visit-egypt-fourth-review-loan-programme-2024-11-20\/\" style=\"\" rel=\"noopener\">Reuters<\/a> | <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2024-11-20\/imf-says-egypt-program-review-talks-to-continue-after-progress\" style=\"\" rel=\"noopener\">Bloomberg<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The review is set to unlock a USD 1.3 bn tranche from the Fund<\/p>\n","protected":false},"author":1,"featured_media":655626,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","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":[7106,104,72],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-655625","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-debt","tag-economy","tag-enterpriseam","wpautop","entry"],"acf":{"mongo_id":"1c3096e9-f166-49ef-9a8e-8e951a760bad","order":"5","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/11\/2052.jpg","photo_position":"above","homepage_title":"","full_issue_title":"IMF set to wrap fourth review and green light program amendments requested by Egypt","related_issue":[655617],"teaser":"The review is set to unlock a USD 1.3 bn tranche from the Fund","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/11\/.f5a72891-5d61-4acf-ad28-c3a9b2f80f48.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>IMF set to wrap fourth review and green light program amendments requested by Egypt - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2024\/11\/21\/imf-set-to-wrap-fourth-review-and-green-light-program-amendments-requested-by-egypt\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta 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