WASHINGTON, -- The International Monetary Fund (IMF) stated that indirect ramifications of the Israeli occupation's war on Gaza and trade disruptions in the Red Sea continue to negatively affect sentiment and cause substantial declines of up to 70 percent in Suez Canal receipts a significant source of foreign currency for Egypt.

The IMF issued a statement on Wednesday upon concluding mission's visit to Egypt, which has extended from November 6 to November 20.
"With ongoing multiple geopolitical tensions in the region, the economic outlook for the region, including Egypt remains challenging," read the statement.
The IMF took note of the increasing number of refugees in Egypt, saying that it is adding to fiscal pressures on public services, especially health and education.
"Against this difficult external environment, the authorities have implemented key reforms to preserve macroeconomic stability. The unification of the exchange rate since March has eliminated the backlog of FX demand and eased imports," it said.

"The Egyptian authorities and IMF staff have made substantial progress on policy discussions toward the completion of the fourth review under the Extended Fund Facility (EFF)," relayed the statement, adding that discussions also covered medium-term challenges and opportunities, as well as additional reform measures that could with climate change.

IMF's mission and Egyptian authorities agreed that tax policy reforms will help Egypt succeed in its domestic revenue mobilization efforts, to generate adequate fiscal space and finance much needed expenditure programs (especially in health, education and the social safety net) while reducing debt and debt service.
The statement underlined private sector development as the main engine of future growth, paramount to ensuring macroeconomic stability, create job opportunities and "unlock Egypt's economic potential for the benefit of all Egyptians".

Discussions are expected to continue over the coming days to finalize agreement on the remaining policies and reforms that could support the fourth review.

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