Sameh El-Torgoman: The agreement with the IMF is a confirmation of confidence for investors in the Egyptian economy

Sameh El-Torgoman, executive director of Evolve Investment Holding Company, said that the agreement on the money fund is a confirmation of confidence for the Egyptian economy in the coming period to improve the investment environment and attract foreign funds, explaining that the approval of new financing for Egypt is very important positive, and at the same time stressing that financial institutions and Gulf and International funds consider the approval of Fund financing to any country as a message of confidence that the country’s economy is safe and stable.

Al-Turjuman added, in statements to Amwal Al-Ghad, that there are 3 positive factors in obtaining the investment tranche during the current time, including the return of foreign confidence in investing in the Egyptian market as a result of the approval of the Egypt Loan Allocation Fund, thus increasing confidence in pumping in more money.

He emphasized the importance of the Fund’s trust in the reform program prepared by the Government in order to adopt a clear vision for the progress of various sectors, and enable the private sector to enter the Egyptian Economic Vision 2030.

Al-Torgoman pointed out that the improvement of the economic environment during the coming period will naturally affect the performance of the Egyptian Stock Exchange in the event of a strong return of foreigners investing in stocks, which has become a big opportunity due to the low price of listed stocks, especially after the wave of large selling pressure since the beginning of the year. .

And the Egyptian government announced the approval by the Board of Directors of the “International Monetary Fund”, last Friday, of the program agreed between the executive management of the fund and the Egyptian state, represented by the “government and the central bank of Egypt” in connection with the comprehensive program of Egyptian national economic reform, which extends to for a period of four years, which will support the Priory of the “International Monetary Fund” by offering extended credit to the Egyptian state.

She explained that the agreement approved by the fund’s board of directors and the accompanying financing will allow the Egyptian authorities to obtain an additional external financing package through a number of international and regional institutions, as well as through global financial markets.

She emphasized that the approval of the International Monetary Fund for the comprehensive program of national economic reforms comes as an additional confirmation of the support of the international community and development partners to Egypt’s economic reform program, and also reflects confidence in Egypt’s ability to fulfill its international obligations and its ability to achieve the targeted economic growth rates.

The government said that the approval of the fund’s board of directors on the expert report, which was agreed with the Egyptian government and the Central Bank of Egypt last October, without any additional conditions or burdens, adds a new certificate of confidence to the Egyptian economy and also sends a positive signal to domestic and foreign markets, and provides a strong incentive to encourage investment, exports and international trade with Egypt.

Egypt’s comprehensive and national economic reform program aims to improve macroeconomic stability and ensure public debt sustainability in the medium term, and work to improve the resilience, resilience and ability of the Egyptian economy to face external shocks, which have recently become stronger and more frequent globally .

The comprehensive national economic reform program for Egypt includes an important axis related to strengthening the social safety net in a way that ensures efficiency and focus and in a way that achieves the highest degree of protection for the vulnerable. The reform program also includes accelerating efforts to increase the competitiveness of the Egyptian economy by adopting an integrated and consistent package of policies, measures and structural reforms. Which would achieve a path of high and sustainable growth led by a greater role and contribution of the private sector, in a way that guarantees the creation of productive and sufficient jobs.

The government noted that, on the side of reforms and measures related to fiscal policy, it aims to work on continuous efforts of financial discipline, which is reflected in the continuation of achieving the first annual surplus in the general budget, as well as work on the state’s return to the debt-to-GDP path in decline, reaching levels of less than 80% of GDP in the medium term.

Its goal is to work on further extending the duration of the national debt, diversifying sources of financing, reducing the overall needs of the budget for financing, improving the efficiency of income and spending in the general budget, and working on increasing spending for targeted social protection and all areas of human development.

The £70 billion annual cost of implementing the welfare package

The government has indicated that it will work through the Ministry of Finance to complete the implementation of the medium-term state revenue strategy, the aim of which is to improve the efficiency, effectiveness and fairness of the tax system.

The Ministry of Finance also aims to quickly complete the activation of the unified finance law, which was recently approved, to support sustainability and green economy efforts, and to undertake policies and initiatives that help reduce the negative effects of climate change.

The Ministry of Finance will continue with efforts and plans related to strengthening transparency and financial disclosure and involving all groups in the stages of budget preparation, implementation and monitoring to ensure the achievement of the goal of the Participatory Budget Initiative.

The government pointed out that, as a quick response to the mandates of President Abdel Fattah El-Sisi, the President of the Republic, it had to provide sufficient and adequate funds for the expansion of the social protection program in order to ensure the provision of maximum support and protection of the target groups.

And she clarified that in this context a social protection package with an annual cost of approximately £70 billion was approved, represented by the approval of an additional allowance of £300 per month for all workers in government agencies and agencies and for pensioners, which amount to around 10 million pensioners, and an increase the minimum wage for state workers by around 11% to reach £3,000 a month, and an increase in the income tax exemption threshold for all recipients by around 25% to ensure monthly income increases at rising rates for those on lower incomes.

The government previously announced an extension of the period for using the additional monthly increase set for ration card holders until the end of the current fiscal year ending in June 2023 in order to provide them with additional financial support that guarantees the ability to provide the basic needs of their families, and a decision was made on the stabilization of electricity prices for citizens No amendments until the end of 2022/2023. to preserve employment in order to ensure the stability of living conditions for the largest number of citizens.

This package comes as a supplement and reinforcement of the procedures approved at the beginning of the current fiscal year, the most important of which is the increase and strengthening of the “Takaful and Karama” program by increasing the number of beneficiaries to about 5 million families, as well as the continuation of work on securing the necessary funds for the “Dignified Life” program ” aimed at Improving all aspects of life and infrastructure in all villages and rural areas of Egypt, as well as the Ministry of Finance bearing real estate tax costs for a large number of industrial activities for a period of 3 years.

On the monetary policy side, the Central Bank of Egypt, as part of a comprehensive program of national economic reform, aims to continue efforts to control the inflation rate and ensure price stability in the Egyptian market. The central bank’s efforts to improve the effectiveness of monetary policy tools, the continued preservation of the stability of the banking sector and continued efforts to increase the efficiency and flexibility of the exchange market will continue to strengthen Egypt’s competitiveness and strengthen the sustainability and resilience of the Egyptian economy, as well as work on a gradual and sustainable increase in the balance of foreign exchange reserves.

On the side of structural measures and reforms, the program of the Egyptian government supported by the agreement of the International Monetary Fund, which was approved yesterday by the Board of Directors of the Fund, includes a coherent and integrated set of measures that contribute to increasing the competitiveness of the Egyptian economy, improving the business environment, increasing the rate of productivity and the rate of exports of goods and services , as well as improving investments in green activities. Increasing the role and contribution of the private sector to the Egyptian economy and investment to ensure the achievement of high and sustainable growth rates for the Egyptian economy, while providing sufficient and productive job opportunities for all those who wish to work in the Egyptian market.

The reform plan includes the rapid issuance and publication of the “State Ownership Policy Document” in its final form, to confirm the desire of the Egyptian state and its institutions to encourage and attract the private sector, with the aim of increasing its investment and its strong presence in the Egyptian market, and increase its strong contribution to economic growth in the coming period.

The Egyptian government’s plans also include working to improve the environment for fair competition in the Egyptian market, and to reduce and simplify trade and investment procedures to attract more domestic and foreign investment to the Egyptian market.