Washington, D.C, Dec 25, (V7N) - The International Monetary Fund (IMF) announced on Tuesday that it has reached a deal with Egyptian authorities, granting the country access to approximately $1.2 billion in funding. However, the agreement is subject to approval by the IMF's executive board.

Ivanna Vladkova Hollar, who led the IMF mission in talks with Egyptian officials, praised the country for its ongoing efforts to maintain macroeconomic stability despite challenges such as regional tensions that have led to a sharp decline in Suez Canal revenue. She emphasized the importance of continuing fiscal consolidation measures to maintain debt sustainability and manage significant interest costs.

Fiscal Reforms and Long-Term Strategy
Vladkova Hollar further commended Egypt's efforts to simplify and streamline its tax system. However, she highlighted that additional reforms are necessary to boost domestic revenue generation.

"Comprehensive reforms are needed to rebuild fiscal buffers, reduce debt vulnerabilities, and create space for increased social spending, particularly in health, education, and social protection," she noted.

The deal follows successful staff-level discussions under the Extended Fund Facility (EFF) arrangement, which were held both in person from November 6-20 and virtually afterward.

Next Steps
The IMF stressed that Egypt's economic reforms must continue to secure long-term stability and improve its financial position, as well as enhance social support for the population. The approval from the IMF’s executive board will be the final step to formalizing the deal.

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