IMF Economic Review for Egypt Delayed to Q1 2024

 IMF Managing Director Kristalina Georgieva shakes hands with the Egyptian Central Bank Governor Hassan Abdullah while Finance Minister Mohamed Maait looks on. (Egyptian Ministry of Finance)
IMF Managing Director Kristalina Georgieva shakes hands with the Egyptian Central Bank Governor Hassan Abdullah while Finance Minister Mohamed Maait looks on. (Egyptian Ministry of Finance)
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IMF Economic Review for Egypt Delayed to Q1 2024

 IMF Managing Director Kristalina Georgieva shakes hands with the Egyptian Central Bank Governor Hassan Abdullah while Finance Minister Mohamed Maait looks on. (Egyptian Ministry of Finance)
IMF Managing Director Kristalina Georgieva shakes hands with the Egyptian Central Bank Governor Hassan Abdullah while Finance Minister Mohamed Maait looks on. (Egyptian Ministry of Finance)

An Egyptian lawmaker has revealed that the first review by the International Monetary Fund (IMF) of Egypt’s economic reform program, initially scheduled for September, has been postponed for the second time.

It is now anticipated to take place in the first quarter of 2024.

“The initial review by IMF experts this month will not proceed due to the government’s delay in fulfilling some of the commitments it made with the IMF under the recent agreement,” said Yasser Omar, the Deputy Chairman of the parliamentary Planning and Budget Committee.

In December 2022, the IMF's Executive Board approved a $3 billion loan to Egypt under a 46-month agreement. Egypt received the first installment of $347 million in December, with the remaining disbursements contingent on reviews conducted by IMF experts.

However, the implementation of the agreement came to a halt because the IMF has not conducted the first review of the economy, as the government has refrained from taking more stringent steps to adhere to a flexible exchange rate for its national currency.

This reluctance stems from the significant inflation rates and concerns about the economic and social repercussions such a decision might have on citizens.

Omar stated that the government would be able to fulfill all of its commitments to the IMF, including adhering to a flexible exchange rate for the Egyptian pound against the dollar, in light of the steps it is taking and the acceleration of the privatization program.

Earlier this year, Prime Minister Mustafa Madbouly announced a list of 32 companies and banks that the government intends to offer to investors over the course of the year.

Finance Minister Mohamed Maait stated that Egypt aims to achieve $10 billion in net foreign direct investment during the current fiscal year, compared to $8.6 billion in the previous fiscal year.

Omar also noted that he expects the IMF review to be conducted in the first quarter of 2024 at which point the economy should be better equipped to handle a new floatation of the pound.



Zelenskiy Says he May be Forced to Sign Mineral Agreement with US

Ukrainian President Volodymyr Zelensky holds a press conference at the end of the forum 'Ukraine. Year 2025', in Kyiv, Ukraine, 23 February 2025, amid the Russian invasion. EPA/SERGEY DOLZHENKO
Ukrainian President Volodymyr Zelensky holds a press conference at the end of the forum 'Ukraine. Year 2025', in Kyiv, Ukraine, 23 February 2025, amid the Russian invasion. EPA/SERGEY DOLZHENKO
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Zelenskiy Says he May be Forced to Sign Mineral Agreement with US

Ukrainian President Volodymyr Zelensky holds a press conference at the end of the forum 'Ukraine. Year 2025', in Kyiv, Ukraine, 23 February 2025, amid the Russian invasion. EPA/SERGEY DOLZHENKO
Ukrainian President Volodymyr Zelensky holds a press conference at the end of the forum 'Ukraine. Year 2025', in Kyiv, Ukraine, 23 February 2025, amid the Russian invasion. EPA/SERGEY DOLZHENKO

Ukrainian President Volodymyr Zelenskiy on Sunday said he may be forced to sign an economic agreement with the United States that would ensure continued aid for Ukraine in return for the US making a profit from minerals in the country.
“If your conditions are, ‘We will not give you aid if you do not sign an agreement,’ then it is clear,” Zelenskiy said during a news conference at a forum of government officials in Kyiv marking the three-year anniversary of Russia’s full-scale invasion of Ukraine.
“If we are forced and we cannot do without it, then we should probably go for it ... I just want a dialogue with President (Donald) Trump."
The Trump administration has pressured Zelenskiy to sign a deal allowing the US access to Ukrainian rare earth minerals as a form of compensation for the assistance the US has provided to Kyiv as it defends against Russia's invasion.
Zelenskiy earlier declined to sign off on an initial US offer, arguing it did not provide Ukraine with the security guarantees it needs to deter Russian attacks.
On Sunday, Zelenskiy said he was open to brokering a deal that would let the US profit from his country's minerals, but the $500 billion sum initially proposed by the Trump administration wasn't acceptable.
"I am not signing something that will be paid off by 10 generations of Ukrainians,” The Associated Press reported.
Zelenskiy’s chief of staff, Andrii Yermak, left the Kyiv forum early on Sunday along with Economic Minister Yuliia Svyrydenko for what Yermak said were talks with US officials on a potential deal.
He said Ukraine’s mineral resources represent “a very important element that can work in the general structure of security guarantees — military guarantees and others.”