An International Monetary Fund (IMF) delegation will start their review mission to Egypt on 28 April until 8 May, according to Egyptian Minister of Finance Amr El-Garhy’s call with Reuters on Wednesday.
The government decided to adopt an economic reform programme, which was demanded and backed by the International Monetary Fund (IMF) in November. The programme included the introduction of the value-added tax (VAT) law, the reduction of fuel subsidies, and the free flotation of the Egyptian currency.
Egypt’s authorities have been implementing the policies agreed upon with the IMF, said IMF mission chief for Egypt Chris Jarvis. Jarvis’ statement came after a series of meeting that took place in London between El-Garhy and an IMF team last week.
The IMF had announced last month their plans to complete their first review of the programme around June this year, before releasing the 2nd tranche of the $12bn loan.
The IMF agreed to a three-year programme with Egypt last November and released the first tranche worth $2.75bn from the $12bn loan designed to give the economy a boost.
The adopted economic reform programme, which included various tough changes, came in an effort to revive the economy, reduce the budget deficit, redirect the economy to a path of growth, and reduce imports of non-core goods. The programme includes a new investment law, income tax law reforms, and the adoption of bankruptcy law.
Despite its essentialness, the economic reform programme came at a price—inflation rates reached a 30 year high of 33% in February.