The International Monetary Fund (IMF) and Egypt have agreed to finalise work to reach a staff-level agreement on a loan “very soon”, the multilateral lender said on Saturday.
“IMF staff and the Egyptian authorities have held very productive in-person discussions on the margins of the IMF and World Bank annual meetings and made substantial progress on all policies,” Gerry Rice, director of communications at the IMF, said.
“The implementation of the authorities’ comprehensive structural reform agenda would gradually enhance the competitiveness of the economy, reduce the role of the state in the economy, level the playing field for the private sector, improve the business climate and foster transition towards a greener economy.”
The Arab world’s third-largest economy is seeking a new loan for up to $8 billion as part of an economic restructuring programme to be agreed with the IMF.
The North African country has been hit hard by the fallout from the Russia-Ukraine war, forcing the government to respond with a series of austerity measures as well as additional spending to shield the poor against higher food prices.
Higher energy prices and supply chain disruptions caused by the Covid-19 pandemic are also combining to raise the price of food items, especially wheat-based products such as bread, a main staple for most of its 104 million population.
Egypt, where about 30 per cent of the population lives below the poverty line, buys 80 per cent of its wheat imports — 13 million tonnes in 2021 — from Russia and Ukraine.
The Arab world’s most populous nation has approached the IMF twice before, seeking help since 2016, when it secured a $12bn loan as part of a far-reaching reform programme that featured a devaluation of its currency, the lifting of state subsidies on essential services and the introduction of a wide range of taxes.
The measures triggered a wave of price increases that hit the middle and working classes the hardest, but won accolades from donors and international financial agencies.
In 2020, Egypt received a $5.2bn standby arrangement from the IMF along with $2.8bn under the lender’s Rapid Financing Instrument to cope with the fallout from the pandemic.
Meanwhile, Egypt’s Gulf allies pledged as much as $22bn in April this year to help the country cope with the effects of the war in Ukraine. The aid from Qatar, Saudi Arabia and the UAE will come in the form of central bank deposits and investments.
The government has made “substantial progress” on a continued fiscal consolidation path that will safeguard public debt sustainability and ensure a steady decline of the debt-to-GDP ratio over the medium term, the IMF said.
It has also worked on additional fiscal and related structural policies that will further expand the social safety net for the most vulnerable, improve the budget composition and enhance fiscal transparency.
“Egyptian authorities have made substantial progress on monetary and exchange rate policies that would anchor inflation expectations, improve monetary policy transmission, improve the functioning of the foreign exchange market and bolster Egypt’s external resilience,” the Washington-based fund said.
“This would enable Egypt to gradually and sustainably rebuild foreign reserves.”
Also affected by the Russia-Ukraine war is Egypt’s vital tourism sector that contributes more than 10 per cent of its gross domestic product.
Although tourist numbers are back to healthy levels after the slump caused by the pandemic, Egypt is still feeling the pinch from the loss of Russian and Ukrainian tourists, who normally account for 30 per cent of its foreign visitors.
President Sheikh Mohamed with Abdel Fattah El Sisi in Egypt — in pictures
Since March, the Egyptian pound has depreciated by about 20 per cent.
Its value is expected to further slide in the remainder of the year — from the current 19.60 Egyptian pounds to the dollar to around 22 to 23 Egyptian pounds to the dollar by the beginning of next year.
A shortage of US dollars, partially caused by a soaring import bill and the flight of billions of dollars from Egypt’s once lucrative debt market, has hit local industries hard.
Jeff Buckley: From Hallelujah To The Last Goodbye
By Dave Lory with Jim Irvin
Surianah's top five jazz artists
Billie Holliday: for the burn and also the way she told stories.
Thelonius Monk: for his earnestness.
Duke Ellington: for his edge and spirituality.
Louis Armstrong: his legacy is undeniable. He is considered as one of the most revolutionary and influential musicians.
Terence Blanchard: very political - a lot of jazz musicians are making protest music right now.
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Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
Killing of Qassem Suleimani
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
MATCH INFO
Euro 2020 qualifier
Norway v Spain, Saturday, 10.45pm, UAE
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
The five pillars of Islam
Mohammed bin Zayed Majlis
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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Dubai World Cup prize money
Group 1 (Purebred Arabian) 2000m Dubai Kahayla Classic - $750,000
Group 2 1,600m(Dirt) Godolphin Mile - $750,000
Group 2 3,200m (Turf) Dubai Gold Cup – $750,000
Group 1 1,200m (Turf) Al Quoz Sprint – $1,000,000
Group 2 1,900m(Dirt) UAE Derby – $750,000
Group 1 1,200m (Dirt) Dubai Golden Shaheen – $1,500,000
Group 1 1,800m (Turf) Dubai Turf – $4,000,000
Group 1 2,410m (Turf) Dubai Sheema Classic – $5,000,000
Group 1 2,000m (Dirt) Dubai World Cup– $12,000,000
AIR
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The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
The Florida Project
Director: Sean Baker
Starring: Bria Vinaite, Brooklynn Prince, Willem Dafoe
Four stars
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'Avengers: Infinity War'
Dir: The Russo Brothers
Starring: Chris Evans, Chris Pratt, Tom Holland, Robert Downey Junior, Scarlett Johansson, Elizabeth Olsen
Four stars
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
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