Egyptian President Abdel Fattah El-Sisi stated that the country is incurring monthly losses estimated at about $800 million due to the decline in Suez Canal revenues as a result of the current situation in the Red Sea, which has affected international trade and maritime navigation. In a speech during the Armed Forces’ Iftar event on Monday evening, Sisi added, "The government is working on finding solutions to compensate for these losses while continuing to support economic sectors to enhance growth and financial stability."
He continued, "The Egyptian economy is showing positive indicators, evidenced by the approval of the International Monetary Fund (IMF) for the disbursement of a new tranche of funding for Egypt under the economic reform program agreed upon with the IMF, which will reflect on supporting the Egyptian economy and achieving financial sustainability." Sisi also noted, "The government is committed to the reforms agreed upon with the IMF, which aim to improve the investment environment and boost economic growth."
He emphasized, "The importance of joint work with the IMF according to well-thought-out steps, as well as cooperation between state institutions, the private sector, and civil society, as this is the way to achieve comprehensive development." He added, "Egypt has been able to move forward steadily despite the challenges it faced over the past 15 years, including the economic crises that affected all countries of the world." He further mentioned, "The Egyptian people have shown their resilience and support for the state's institutions, particularly the army and police, which are the cornerstone of the state in exceptional times," according to his statement.
Sisi said that "he understands the anxiety among the Egyptian people due to the current events, which reflects his national responsibility and concern for the country’s stability," adding that "the economic situation has started to improve, but more work needs to be done, and we must move forward with the development of Egyptian society." He also referred to the media, saying, "Television provides an opportunity for positive work that reflects seriousness and commitment, and the drama during Ramadan has presented many works. Therefore, we need some serious works, as we should not focus only on frivolous matters or things that do not build the nation, but we must seek what is good," as he expressed it.
Sisi concluded by saying, "Egyptian media plays a crucial role in building a strong society, along with the role of the family, school, university, mosque, and church. The government must participate in media efforts aimed at building citizens who adhere to the principles and constants of their society." Egyptians are suffering from ongoing high living costs and inflation due to the repercussions of the economic reform program agreed with the IMF, which obligates the government to liberalize prices of basic goods and services and apply a flexible exchange rate for the currency in order to secure an $8 billion loan.
The IMF approved the disbursement of a $1.2 billion tranche to Egypt after completing the fourth review of its economic reform program, following the approval of abandoning the primary budget surplus target. The IMF’s executive board also approved Egypt’s request to reach an arrangement under the Extended Fund Facility, allowing it to receive an additional $1.3 billion.
