Cairo - Mubasher: "I will recommend that the IMF Executive Board approve Egypt’s request to secure fund facility of $12 billion," said IMF Managing Director Christine Lagarde.
The IMF Executive Board will meet on Friday, November 11 to discuss Egypt’s request for financial assistance under an Extended Fund Facility (EFF) for $12 billion, according to an official statement by IMF.
"The Egyptian authorities have embarked on an ambitious reform program to put the country’s economy on a sustainable path and achieve job-rich growth," said Lagarde.
Lagarde also stated that she believes the liberalization of the exchange rate and the adoption of the second phase of the fuel subsidy reforms are important measures in the authorities’ reform agenda.
Allowing the exchange rate to be determined by market forces will notably improve Egypt’s external competitiveness, address shortages of foreign currency, support exports and tourism and help attract foreign investment, added Lagarde.
In addition, adjusting fuel prices will contribute to lower budget deficits and will free up public resources for much-needed and better targeted social spending on health, education, and growth-enhancing investments, assured Lagarde.
