The British Embassy is today able to release advance elements from the UK statement during the IMF Board discussions on 11 November. The final statement will nominally be released in the coming weeks. The details, given for the first time, give direct insight into the thorough and international support for Egypt’s reform plan at the meeting. The UK’s Executive Director’s intervention led a particular focus on ensuring social protection, inclusion, and creating a positive climate for investment as the key fuel for Egypt’s economy long-term.
The IMF Board approved a three-year, $12 billion loan to help the Egyptian economy realise its immense potential. This home-grown program will revive Egypt’s growth prospects by restoring stability and confidence in the economy, attracting investment and creating jobs. The UK played a vital role in the IMF decision as a founder and important contributor to the fund.
We congratulate the Government on setting out such a clear vision for economic reform, and taking the first steps on this difficult, but necessary road. The UK experience is that while challenging for citizens, seeing these reforms through to completion will lead to a more solid economy in the future.
The UK particularly welcomes the following clauses in the IMF loan agreement:
- The commitment of an additional 1% of GDP towards protecting the poorest citizens from rising inflation.
- The new measures that will increase female labour force participation
- The plan to clear outstanding arrears to International oil companies.
As Egypt’s largest investor, we welcome the plan to clear outstanding dues to International Oil Companies. Investors globally have noticed and will be reassured to know that the Egyptian Government honours its commitments.
- The UK remains one of the largest shareholders of the IMF and has been strongly supportive of this programme.
- The UK is planning to double the level of technical assistance offered to support Egyptian economic policymakers.
We congratulate authorities on what they have achieved to date, support their reform efforts and urge them to make the most of this opportunity to reform.
In addition, UK investment dwarfs IMF support with $30.5 billion investment flows from to Egypt since 2011 and a strong pipeline of recent announcements. The past month, has seen three major British companies – Vodafone, Unilever and GlaxoSmithKline –invest a total of EGP3.785 billion in Egypt, while BP has invested approximately USD30 billion in Egypt to date, with plans for a further USD13billion before 2020.
British Ambassador to Egypt said:
This is a decisive moment for Egypt’s economy and Britain is leading the way with words and economic support to ensure the difficult reform step produce real economic growth that benefits all Egyptians.