IMF approves release of $820 million for Egypt and calls for reforms

The International Monetary Fund (IMF) has approved the release of $820 million for Egypt, welcoming the country’s efforts to restore macroeconomic stability.

Egypt says it has shifted to a flexible exchange rate regime, a policy the IMF said on Monday remains a cornerstone of the authorities’ program.

“Inflationary pressures are gradually abating, foreign exchange shortages have been eliminated, and fiscal targets (including related to spending by large infrastructure projects) were met,” an IMF statement said.

“While there has been progress on some critical structural reforms, greater efforts are needed to implement the State Ownership Policy (SOP),” it added.

The Fund called on Egypt to accelerate a programme of divestment of state-owned enterprises and carry out reforms to prevent them from using unfair competitive practices.