Allard highlighted the country’s strong ability to meet its external financial obligations, with relatively favorable rates and low maturities, to help build resilience against external shocks
IMF mission chief Celine Allard was clear yesterday as she stated that Egypt would no longer need external financing in the short term due to its successful reforms.
Egypt recently completed its final review for its 12-month Stand-By Arrangement (SBA) with the IMF, which was used to support and protect Egypt’s economy from the economic shock caused by the pandemic.
The IMF and Egypt had just completed a different 3-year long IMF-back reform program in 2019 worth $12 billion before the pandemic hit.
Allard highlighted the country’s strong ability to meet its external financial obligations, with relatively favorable rates and low maturities, to help build resilience against external shocks.
As to whether the IMF will engage in further financing with Egypt for the 2nd phase of its structural reform, Allard stated that it is in Egypt’s court, noting that it is up to the Egyptian authorities to decide how they want to take their post SBA engagement with the IMF forward.
She did, however, stressed that the IMF will continue to support authorities in the implementation of the reform, whatever the form of engagement.
