On December 24, 2024, the International Monetary Fund (IMF) and Egypt agreed on a plan to help Egypt get $1.2 billion. This money will come if the IMF board approves it. The agreement is part of an ongoing effort to help Egypt's economy, which has been facing a lot of challenges lately.
What’s in the Plan?
Changing the Budget Plan:
Because of problems like lower earnings from the Suez Canal, Egypt needs to change its budget plan a little. Now, the country will focus on saving some money but also using some of it for important programs to help people who need it most, like poor families and the middle class.
More Help for People:
The new budget plan will make sure the government can spend more on programs that help vulnerable groups and the middle class without getting into too much debt.
Tax Changes:
The government has promised to make changes to the tax system. Instead of raising taxes, Egypt will focus on removing some tax breaks to collect more money. The plan is to increase the country's tax income by 2% over the next two years.
Better Business and Transparency:
Egypt also wants to improve how businesses run in the country. The government will work to make the economy more competitive and transparent. This means making sure people know how the government spends money and runs businesses.
Addressing Economic Risks:
The government has to keep a close eye on risks, especially from government-owned energy companies. They also need to stick to limits on how much they can spend to avoid getting into more debt.
In summary, this agreement is part of a big effort to help Egypt’s economy stay stable. While there’s still a lot of work to do, the government is making changes to help people and make sure the country’s finances are safe in the future.