THE Egyptaffected by rise in prices of raw materials because of her Russian invasion of Ukrainewill ask for support from International Monetary Fundthe Washington financial institution said yesterday Wednesday.
“The rapidly changing international environment and the aftermath of the war in Ukraine pose great challenges for many countries around the world, including Egypt,” she said. The head of the IMF mission in that country, Celine Allarin the press release he published.
Thus, “the Egyptian authorities requested the support of the International Monetary Fund to implement their overall economic program,” he added.
Egypt depends to a large extent on imports of cereals and sunflower oil from the Russia and Ukraine and tested hard from ignition of raw material prices.
THE inflation reached 10% on an annual basis in February, mainly due to the rise in food prices by 20%.
“A series of” macroeconomic and structural measures will alleviate the shock to the Egyptian economy, protect the most vulnerable and maintain Egypt’s resilience and growth prospects in the medium term, “Ms Alar said.
“To this end, the recent steps taken by the authorities to extend targeted social protection and to implement the flexibility of the exchange rate” of the Egyptian pound “are welcome,” he added.
THE inflation has not stopped growing in Egypt since the implementation of the IMF-sponsored reform program in November 2016. The institution then granted Cairo a loan of almost 11 billion euros in exchange drastic austerity measureswhich included a major devaluation of the currency and an adjustment of the basic food subsidy system.
The The IMF approved a $ 5.4 billion support program in 2020 intended to tackle the new coronavirus pandemic in Egypt, which has been particularly hard hit by the disruption of tourism and aviation. The last installment was disbursed in June 2021.
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