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International Monetary Fund

IMF Announces Review Date for Egypt’s Economic Program and $820 Million Tranche

by Chief editor of world-today-news.com April 1, 2024

written by Chief editor of world-today-news.com

Written by – Ahmed Yaqoub Monday, April 1, 2024 02:21 PM

said Ivana Vladkova Holer, Head of Mission International Monetary Fund To Egypt, in response to “The Seventh Day” questions, the date for the new review of Egypt’s economic program, which is the third review, will take place 3 months from now, that is, during the month of June 2024, stressing that the following reviews will take place periodically, every 6 months.

Ivana Vladkova-Höller, head of the International Monetary Fund mission to Egypt, added during a virtual press conference today, Monday, that after the approval of the new review next June, a new tranche worth $820 million will be made available.

The International Monetary Fund said that the $35 billion deal to develop Ras El Hekma city supported Egypt’s economy, reduced pressure on the balance of payments in the near term, and supports the Egyptian economy’s handling of future shocks.

The International Monetary Fund stressed the importance of implementing economic policies and supporting the private sector to be an engine of growth.

The International Monetary Fund pointed out the importance of targeting the Central Bank of Egypt to reduce inflation through important measures, most notably the interest rate.

The International Monetary Fund said that Egypt is implementing a strong plan to achieve economic stability, focusing on achieving a flexible exchange rate system and supporting the private sector to be a leader in economic growth.

The Executive Board of the International Monetary Fund recently completed the first and second reviews of the Egyptian financing program and raised the value of the loan from $3 billion to $8 billion.

The International Monetary Fund said in a press statement that the completion of the discussion of the first and second review of Egypt’s economic program allows for the disbursement of $820 million of the total financing value.

On March 6, the International Monetary Fund announced that it had reached an agreement at the expert level with the Egyptian authorities regarding financing that would provide $8 billion, noting that all details related to the first and second review of Egypt’s program had been agreed upon.

The International Monetary Fund confirmed, in a press statement, that the agreement will be presented to the Executive Board of the Monetary Fund for approval, stressing that the IMF team has made excellent progress in constructive discussions with the Egyptian government regarding the first and second review of the economic reform program supported by the Fund.

The International Monetary Fund pointed out the importance of the flexible exchange rate mechanism, and it was agreed to increase social spending and support the neediest groups, stressing that discussions between the International Monetary Fund and the Egyptian government will continue during the next stage.

2024-04-01 12:21:00
#IMF #June #review #Egypts #program #availability #million #Youm7

April 1, 2024 0 comments

Business

International Monetary Fund Warns Against Early Interest Rate Cuts: Global Economy at Risk

by Chief editor of world-today-news.com February 2, 2024

written by Chief editor of world-today-news.com

The International Monetary Fund warned against central banks rushing to cut interest rates too early. International Monetary Fund Director Kristalina Georgieva confirmed that the Fund sees this step as a “greater risk to the global economy” if it is achieved “early than if it moves a little late.”

Georgieva indicated to reporters in Washington, “The United States is close to achieving what is called a soft landing when policymakers return inflation to the desired target without causing a recession.” She said, “We are preparing for a soft landing, and we are still 50 feet above the ground.” We know that it is not over as long as we do not go down.” She called on Georgieva to return to the data and act on it.

It should be noted that the decline in inflation in many advanced and emerging economies around the world is shifting attention to when banks should start lowering interest rates to stimulate investment and economic growth.
Georgieva’s words come the day after the US Federal Reserve’s interest rate-setting committee voted in favor of maintaining the current level of interest rates.
Federal Reserve Chairman Jerome Powell ruled out the idea of cutting the rate at the next meeting in March, which led to a decline in stocks on Wall Street.
Earlier this week, European Central Bank President Christine Lagarde said that “policymakers are confident that interest rate cuts are coming, but they will not commit themselves to a specific date.”

2024-02-02 08:56:32
#Cutting #interest #rates #early #danger #economy

February 2, 2024 0 comments

Business

“European Stocks Rise on Optimism About US Debt Ceiling Negotiations Despite Weekly Losses”

by Chief editor of world-today-news.com May 26, 2023

written by Chief editor of world-today-news.com

European stock indices rise at the close of trading today, with renewed optimism about the US debt ceiling negotiations, and the European market recording losses this week.

European stocks rose with renewed negotiations on the US debt ceiling

European stock indices rose at the close of trading today, Friday, in light of renewed optimism about the US debt ceiling negotiations, with the European market recording losses this week.

The pan-European Stoxx 600 index closed up 1.2%, after falling to its lowest level since early April, during 3 negative sessions.

On a weekly basis, the benchmark index fell 1.5%, marking its biggest weekly loss in more than two months.

All sectors ended in positive territory, with technology stocks rising 3% and mining stocks rising 2.5%.

Also, Dutch chip machinery maker ASML ended the day up nearly 5%, and the Nasdaq Composite Index rose 1.7%.

Investors are closely watching the US negotiations on the deal, which is progressing, but it is at a “sensitive stage”, according to Republican Representative Patrick McHenry.

And the Republican Speaker of the US House of Representatives, Kevin McCarthy, said yesterday, Thursday, that he had spoken briefly during the past days with former US President Donald Trump about the debt ceiling negotiations, while the time available for reaching an agreement, to avoid the country’s default crisis, is shrinking. On paying off her debts

For her part, the Director-General of the International Monetary Fund, Kristalina Georgieva, said two days ago that the already troubled global economy “doesn’t need the crisis of raising the public debt ceiling of the United States,” expecting that it will be resolved at the last minute, as usual.

The US government debt ceiling is currently more than $31 trillion. This is a record, compared to all the sovereign debts in the world.

US Treasury Secretary Janet Yellen said that June 1 is still an “inevitable deadline” for raising the federal debt ceiling, given the slim odds that the government will collect sufficient revenues to enable it to meet its obligations until June 15, when more is due. from tax revenue.

The global financial markets are witnessing anticipation against the background of the tension between the Democratic administration of US President Joe Biden, and his Republican opponents, over the public debt ceiling.

Also read: What will happen if the United States fails to raise its public debt ceiling?

2023-05-26 19:39:40
#European #stocks #rise #optimism #debt #negotiations

May 26, 2023 0 comments

World

IMF Urges Central Banks to Keep Monetary Policy Tight Amid Inflation Risks

by Chief editor of world-today-news.com May 17, 2023

written by Chief editor of world-today-news.com

International Monetary Fund (IMF) chief deputy managing director Gita Gopinath on Monday urged central banks to keep monetary policy tight, saying there was a high risk of inflation remaining high or accelerating in many emerging markets. FILE PHOTO: April 14, 2023. REUTERS/Elizabeth Frantz

[ワシントン１７日ロイター] – International Monetary Fund (IMF) chief deputy managing director Gita Gopinath on Monday urged central banks to keep monetary policy tight, saying there was a high risk of inflation remaining high or accelerating in many emerging markets.

Markets were probably “overly optimistic” about what it would take to bring down inflation in emerging markets, he said at a meeting hosted by the Brazilian central bank. “While there are encouraging signs, we feel that price pressures are entrenched in many economies and we are concerned about the high risk of higher inflation,” it said.

“The central bank must decisively continue to tighten monetary policy, recognizing that if current monetary tightening is insufficient, more painful measures may be required in the future.” I have to,” he said. It’s a lesson learned from the high inflation period of the 1970s and is “extremely applicable today,” he said.

Fiscal containment underpins the central bank’s fight against inflation, and judicious use of fiscal measures can improve trade-offs in the event of significant financial stress.

#Inflation #upside #risk #high #market #optimistic #IMF #official
2023-05-17 13:35:00

May 17, 2023 0 comments

Business

“Arab Countries’ Foreign Exchange Reserves Face Liquidity Risks, Tunisia and Egypt Most at Risk”

by Chief editor of world-today-news.com May 15, 2023

written by Chief editor of world-today-news.com

The foreign exchange reserves of three Arab countries face more risks, especially during the next two years, which exposes them to liquidity risks amid tighter global financial conditions.

Moody’s credit rating agency data shows that Bahrain is one of the countries most on its list of frontier markets facing pressure on its foreign exchange reserves, as the value of its international bonds due for repayment this year is about 26%, and it will rise to more than 30% over the next two years.

The greatest risks will face Tunisia and Egypt, especially in light of the limited external financing available to both countries. The value of the international bonds due to be repaid by the two countries is about 12% of the foreign exchange reserves during each of the next two years.

Tunisia’s foreign exchange reserves reached $ 8.09 billion at the end of last year, while it is looking to strengthen its dollar resources, as the country is close to obtaining a $ 1.9 billion bailout package from the International Monetary Fund, which may open the way for it to obtain more financing. external.

The situation is similar for Egypt, whose foreign exchange reserves exceed $34 billion. The Arab country, the largest in terms of population, is accelerating its pace to sell government companies, which may save it up to two billion dollars, and this step allows the country to start the first review with the International Monetary Fund within a financing program of 3 billion dollars.

2023-05-15 16:41:34
#Debt #payments #put #pressure #foreign #exchange #reserves #Arab #countries #East #Economy #Bloomberg

May 15, 2023 0 comments

Business

“IMF Warns of Global Economic Consequences if US Fails to Raise Debt Ceiling”

by Chief editor of world-today-news.com May 11, 2023

written by Chief editor of world-today-news.com

The International Monetary Fund (IMF) said on the 11th that if the United States fails to raise the federal debt ceiling and defaults, it will be “very serious” not only for the U.S. economy but also for the global economy, such as rising borrowing costs. influence,” he said. Photographed in September 2018 (2023 REUTERS/Yuri Gripas)

[ワシントン１１日ロイター] – The International Monetary Fund (IMF) said on the 11th that if the United States fails to raise the federal debt ceiling and defaults, it will be “extremely serious” not only for the U.S. economy but also for the global economy, such as rising borrowing costs. “It will have a significant impact,” he said.

IMF spokeswoman Julie Kossack said it was not possible to immediately quantify the impact of a US default on global growth.

U.S. officials should also be alert to new vulnerabilities in U.S. banks, including regional banks, that could emerge as interest rates rise, he said.

2023-05-11 18:41:00
#U.S #default #impact #global #economy #IMF

May 11, 2023 0 comments

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