{"id":656694,"date":"2024-12-09T00:00:00","date_gmt":"2024-12-09T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/12\/09\/imf-expected-to-greenlight-reform-program-renegotiations-before-christmas\/"},"modified":"2024-12-09T00:00:00","modified_gmt":"2024-12-09T00:00:00","slug":"imf-expected-to-greenlight-reform-program-renegotiations-before-christmas","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/12\/09\/imf-expected-to-greenlight-reform-program-renegotiations-before-christmas\/","title":{"rendered":"IMF expected to greenlight reform program renegotiations before Christmas"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>Egypt is in talks with the International Monetary Fund to extend timelines for key reforms<\/strong><strong> under its economic reform program<\/strong>, a senior government official told EnterpriseAM. The official expects Egypt to be placed on the IMF Executive Board\u2019s <a target=\"_blank\" href=\"https:\/\/www.imf.org\/en\/About\/executive-board\/EBC-Scheduled\" style=\"\" rel=\"noopener\">agenda<\/a> before the Christmas holidays for the amendments to be given the final greenlight.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Negotiations with the IMF are reportedly progressing well<\/strong>, with the source noting that the talks have reached \u201cnear-consensus.\u201d However, the final decision rests with the countries that hold the largest voting shares in the Fund.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The government is talking with the IMF about postponing a fuel hike planned for the end <\/strong><strong>of this month<\/strong> to early March and postponing a subsequent hike in June to September, followed by quarterly hikes. This would push the timeline for fully eliminating fuel subsidies to June 2026, rather than December 2025, the source said, noting that such a decision would likely help bring down inflation in the interim. Easing Egypt\u2019s fuel price hike obligations in 2025 could help lower inflation to below 20% by the end of next year, particularly by stabilizing diesel prices. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>While inflation is on the decline, things are very much still touch-and-go<\/strong>, as the Central Bank of Egypt\u2019s Monetary Policy Committee noted during its <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/5fa5091d-1a11-476a-bb06-468fe450d909\/central-bank-of-egypt-keeps-rates-stable-for-fifth-time-in-a-row\" style=\"\" rel=\"noopener\">November<\/a> meeting that while normalizing inflation dynamics and improved inflation expectations indicate that inflation \u201cwill continue its declining course,\u201d it cautioned that upside risks remain due to fiscal measures, geopolitical tensions, and global trade disruptions.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>There\u2019s just one major issue \u2014 our growing fuel subsidy bill<\/strong>, which has <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/de34903b-1ed8-46a2-833c-f3bf21deaac3\/fuel-subsidies-up-232%2525-in-first-quarter-of-fy-2024-25-despite-price-hikes\" style=\"\" rel=\"noopener\">risen 232% y-o-y<\/a> to EGP 28.5 bn in the first quarter of FY 2024-25 despite <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/2e1e29b9-af1f-412d-9492-354ca6e76353\/egypt-hikes-fuel-prices-for-the-third-time-this-year\" style=\"\" rel=\"noopener\">three rounds of fuel price hikes<\/a> this calendar year. Egypt\u2019s fuel subsidy bill is projected to exceed the <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/3fd60d61-8953-483c-a09b-8bce0f612e9e\" style=\"\" rel=\"noopener\">EGP 154.5 bn budget allocation<\/a>, potentially surpassing EGP 200 bn by year-end due to a strong USD and higher oil prices amid geopolitical tensions, according to the source. The Finance Ministry has also disbursed an additional EGP 53 bn to the Oil Ministry to pay foreign partners and secure imports for strategic stockpiling.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>This is a key area of concern for the IMF<\/strong>, as although our source noted that the surge was an unavoidable effect of rising global oil prices, currency depreciation, and higher summer fuel demand, the Fund has <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/b783a33c-54f4-403e-bbb3-d45168e55bab\/imf-completes-third-review-of-our-loan-program,-enabling-the-disbursal-of-usd-820-mn\" style=\"\" rel=\"noopener\">previously made clear<\/a> that eliminating fuel subsidies is a key criterion for evaluating our economic reform program.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>In efforts in part to cut demand, the government is <\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/de34903b-1ed8-46a2-833c-f3bf21deaac3\/fuel-subsidies-up-232%2525-in-first-quarter-of-fy-2024-25-despite-price-hikes\" style=\"\" rel=\"noopener\">ramping up support<\/a><\/strong><strong> for programs to <\/strong><strong>shift vehicles to run on natural gas and electricity<\/strong>, as well as expanding residential gas connections. A document previously seen by EnterpriseAM shows plans to convert 455k vehicles over the next four years to run on natural gas, averaging 113k per year, and connect 1.2 mn homes to natural gas as a cheaper alternative to gas cylinders. Switching to natural gas could save citizens EGP 30k-49k annually, with added savings for the state budget, according to the document.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Protecting low-income consumers from the impact of price hikes is a key concern<\/strong>, with Prime Minister Mostafa Madbouly noting in <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/2e1e29b9-af1f-412d-9492-354ca6e76353\/%253cmark%253e%253c%2Fmark%253eegypt%253cmark%253e%253c%2Fmark%253e-%253cmark%253e%253c%2Fmark%253ehikes%253cmark%253e%253c%2Fmark%253e-%253cmark%253e%253c%2Fmark%253efuel%253cmark%253e%253c%2Fmark%253e-%253cmark%253e%253c%2Fmark%253eprices%253cmark%253e%253c%2Fmark%253e-%253cmark%253e%253c%2Fmark%253efor%253cmark%253e%253c%2Fmark%253e%253c%253cmark%253e%253c%2Fmark%253emark%253cmark%253e%253c%2Fmark%253e%253e%253cmark%253e%253c%2Fmark%253e%253cmark%253e%253c%2Fmark%253ethe%253cmark%253e%253c%2Fmark%253e%253c%2F%253cmark%253e%253c%2Fmark%253emark%253cmark%253e%253c%2Fmark%253e%253e%253cmark%253e%253c%2Fmark%253e%253cmark%253e%253c%2Fmark%253ethird%253cmark%253e%253c%2Fmark%253e-%253cmark%253e%253c%2Fmark%253etime%253cmark%253e%253c%2Fmark%253e-%253cmark%253e%253c%2Fmark%253ein%253cmark%253e%253c%2Fmark%253e-%253cmark%253e%253c%2Fmark%253e2024%253cmark%253e%253c%2Fmark%253e\" style=\"\" rel=\"noopener\">October<\/a> that support measures will \u201ccontinue to exist even after reaching the equilibrium point.\u201d The government is also discussing a potential social support package as part of the upcoming state budget, set to be submitted to parliament in March, according to the source. However, managing inflation, stabilising prices, and promoting investment remain the country\u2019s top priorities, they added.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Approval is expected to be received before year\u2019s end<\/p>\n","protected":false},"author":1,"featured_media":656695,"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":[104,72,272,98],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-656694","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-economy","tag-enterpriseam","tag-imf","tag-subsidies","wpautop","entry"],"acf":{"mongo_id":"49f57560-b333-4f41-aa1b-5a5b969e6424","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/12\/753.jpg","photo_position":"above","homepage_title":"","full_issue_title":"IMF expected to greenlight reform program renegotiations requested by Egypt before Christmas","related_issue":[656689],"teaser":"Approval is expected to be received before year\u2019s end","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/12\/.20d3ad38-7af0-43f7-8dfa-12b8e0dfadd7.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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Statements from the IMF and cabinet yesterday confirmed that the two sides are in talks on a new program, though it remains unclear what kind of assistance the\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\/2022\/3\/336.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":597399,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/07\/25\/egypt-will-be-getting-the-final-tranche-of-the-usd-12-bn-imf-facility-soon\/","url_meta":{"origin":656694,"position":1},"title":"Egypt will be getting the final tranche of the USD 12 bn IMF facility soon","author":"enterpriseam admin","date":"25 July 2019","format":false,"excerpt":"IMF signs off on final USD 2 bn tranche disbursal: The IMF\u2019s Executive Board approved yesterday disbursing the final USD 2 bn tranche of the institution\u2019s USD 12 bn facility to Egypt, after completing its fifth and final review of the country\u2019s economic reform program, the institution said in a\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":[]},{"id":548806,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/08\/23\/imf-talks-in-final-stages-says-madbouly\/","url_meta":{"origin":656694,"position":2},"title":"IMF talks in \u201cfinal stages,\u201d says Madbouly","author":"enterpriseam admin","date":"23 August 2022","format":false,"excerpt":"Egypt and the IMF are in the \u201cfinal stages\u201d of talks for a fresh facility to help shore up the economy, Prime Minister Moustafa Madbouly said in a cabinet statement yesterday. The statement didn\u2019t provide any details about the talks. Madbouly\u2019s statement comes amid growing pressure on the EGP and\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\/2022\/8\/354.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":593659,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/10\/07\/egypts-non-loan-imf-program-still-under-consideration-maait-tells-bloomberg\/","url_meta":{"origin":656694,"position":3},"title":"Egypt\u2019s non-loan IMF program still \u201cunder consideration,\u201d Maait tells Bloomberg","author":"enterpriseam admin","date":"7 October 2019","format":false,"excerpt":"Non-loan IMF program still under consideration but nothing conclusive yet -Maait: Egypt is still looking at securing a non-loan program with the IMF, but future cooperation with the fund could also continue \u201cunder any form,\u201d Finance Minister Mohamed Maait told Bloomberg TV on Thursday (watch, runtime: 2:47). The minister said\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\/2019\/10\/262.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":656694,"position":4},"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":[]},{"id":569068,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/02\/12\/egypts-post-loan-imf-structural-reform-agreement-will-tackle-bureaucracy-says-amer\/","url_meta":{"origin":656694,"position":5},"title":"Egypt\u2019s post-loan IMF structural reform agreement will tackle bureaucracy, says Amer","author":"enterpriseam admin","date":"12 February 2020","format":false,"excerpt":"Egypt\u2019s post-loan IMF structural reform agreement will tackle bureaucracy, says Amer: Egypt is still in talks with the IMF over a post-loan structural reform agreement, which could focus on eliminating bureaucracy to clear a significant hurdle in attracting private sector investment, Central Bank of Egypt (CBE) Governor Tarek Amer said\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\/2\/165.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\/656694","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=656694"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/656694\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/656689"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/656695"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=656694"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=656694"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=656694"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=656694"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=656694"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}