The IMF is engaging with Egypt to strengthen its economy and recalibrating fiscal strategies for social support. A loan agreement under the RSF will address climate change and economic reforms. Lebanon awaits IMF assistance after forming a new government, while Mozambique will be assessed for reform progress in the coming weeks. The initiatives reflect the IMF’s commitment to global economic stability and recovery.
The International Monetary Fund (IMF) is collaborating with Egyptian authorities to strengthen the nation’s economy amidst challenging external conditions and a difficult domestic environment. As stated by IMF spokesperson Julie Kozack, a revised fiscal consolidation path has been agreed upon, aimed at establishing fiscal space for essential social programs that support vulnerable populations and the middle class while maintaining debt sustainability. This recalibration was finalized in December.
A new loan agreement is expected to emerge from the Resilience and Sustainability Facility (RSF), which aims to assist countries in combating climate change. While the specifics of the loan size remain uncertain, it will emphasize essential economic reforms. Key reform priorities include reducing inflation, maintaining exchange rate stability, liberalizing access to foreign exchange, enhancing domestic revenue, and improving the business environment. Moreover, the program intends to promote fair competition between state-owned enterprises and the private sector while strengthening governance and transparency.
In addition, the IMF is prepared to assist Lebanon once a new government is established. Since Lebanon requires foreign investment to address post-conflict reconstruction after last year’s war, Kozack emphasized the significance of the new president’s election and the government’s formation. “Lebanon continues to face profound economic challenges… The election of the president, the formation of a new government, as well as the ceasefire are critical to support policy actions and reforms that would allow the gradual return to the normalization of economic activity in Lebanon,” said Kozack.
An IMF team plans to visit Mozambique in the upcoming weeks to evaluate the progress of economic reforms under the newly formed government. Kozack confirmed the IMF’s commitment to supporting Mozambique in achieving macroeconomic stability and fostering inclusive growth, stating that more detailed insights would follow after the team’s visit. The engagement showcases the Fund’s dedicated approach to facilitating sustainable economic recovery across distinct regions.
The article discusses the IMF’s efforts to assist three countries—Egypt, Lebanon, and Mozambique—in their economic recovery and reform initiatives. This intervention follows challenging external conditions exacerbated by regional conflicts, including the war in Gaza. The IMF emphasizes the importance of structural reforms, fiscal adjustments, and international cooperation to address these nations’ distinct economic challenges and foster resilience amidst ongoing geopolitical risks.
The IMF is actively working with Egypt, Lebanon, and Mozambique to bolster economic stability and implement necessary reforms. In Egypt, a recalibrated fiscal path aims to support vulnerable demographics, while Lebanon awaits reconstruction funds contingent upon a new government. Mozambique will receive IMF support to ensure macroeconomic stability and growth. These collaborative efforts highlight the IMF’s commitment to promoting global economic resilience in the face of challenges.
Original Source: www.thenewsmarket.com
