The Clap
Bloomberg’s Chief Emerging Market Economist “Ziad Daoud” said Egypt has made little progress in the reforms the IMF has asked for 1) adopting a flexible exchange rate & 2) selling state-owned assets.
What
Daoud sees three possible scenarios for the IMF’s upcoming review, which is expected to be held next month:
- Egypt continues to make little progress but the IMF conducts the review anyway.
- Egypt continues to make little progress & the IMF delays the review to September 2023.
- Egypt makes progress between now & June & the IMF conducts the review.
So What
A successful IMF review is needed to unlock the next tranche of the $3 billion loan, which is around $347 million.
Now What
According to Asharq, the IMF could potentially group this upcoming review with the one after it, which is scheduled on September 15, 2023, in case Egypt fails to make enough progress.
