The International Monetary Fund's (IMF) executive board has approved a 46-month $3 billion financial support package for Egypt, the fund said in a statement on Friday. Over the course of the programme, the IMF said it will catalyse additional financing of about $14 billion from Egypt's international and regional partners. "Egypt's IMF-supported programme presents a comprehensive policy package to preserve macroeconomic stability, restore buffers, and pave the way for inclusive and private-sector-led growth." "The package includes a durable shift to a flexible exchange rate regime, monetary policy aimed at gradually reducing inflation, fiscal consolidation to ensure downward public debt trajectory while enhancing social safety nets to protect the vulnerable, and wide-ranging structural reforms to reduce the state footprint and strengthen governance and transparency." "Over the course of the program, the EFF is expected to catalyse additional financing of about $14 billion from Egypt's international and regional partners, including new financing from GCC countries and other partners through the ongoing divestment of state-owned assets as well as traditional forms of financing from multilateral and bilateral creditors." The agreement involves a programme of structural reforms that will "reduce the state footprint and level the playing field between the public and private sector." It further provides for upfront monetary policy tightening and fiscal consolidation. Agreement on the package was unveiled at the staff level on October 27. It provides for an immediate disbursement of about $347 million to help support Egypt's balance of payments and its general budget, the statement noted.
