Dr Jihad Azour, Director of the Department for the Middle East and Central Asia at the International Monetary Fund, said in an interview with Al-Arabiya that negotiations to obtain new funding are continuing with Egypt and things are proceeding according to the schedule.
He stressed that after reaching an agreement with Lebanon in April, there are a number of measures that the government must take swiftly in order for this program to be presented to the fund management. how it started Negotiations with Tunisia In recent months, it has been continuing and progressing.
He stressed that rising interest rates are linked to jumps in inflation, so central bank monetary policies resort to raising interest rates to curb inflation, and “it’s a priority for all countries, including the countries of the region … Therefore, other complementary measures must be taken. At the social level, measures must be taken to protect most weaknesses through a targeted support policy, and at the economic level, working to reduce deficit levels and their impact on debt.
He added: “The high levels of interest in countries that depend on foreign issuance will have a reflection on the cost of debt, so it is necessary to cover this type of risk through economic and financial reforms that help reduce the need for financing and maintenance. financial and economic stability “.
He said: “There is no doubt that this year has been a year of multiple shocks, including the war on Ukraine and the rising cost of energy and raw materials, but there are countries in the region whose financial conditions will improve, as oil exporting countries, as there will be surpluses in excess of $ 1 trillion over the four to five years. ” As with the rest of the countries, they are divided into two parts: those that depend on financing through the financial markets, and that have to cover the risks of rising interest, but we see that the financing capacity still exists, and there are countries that have to accelerate the reform process due to the increase in the dollar and the benefits in order to maintain economic stability. “.
Regarding the inflation levels in the Gulf countries, the Director of the Middle East and Central Asia Department of the International Monetary Fund pointed out that they are lower than in other countries, given the structure of the consumer basket, but with the global increase of inflation, monetary policies need to be adapted to maintain acceptable price levels.
He continued: “On the other hand, the policies that have been adopted in recent years in terms of diversifying sources of income are steps in the right direction, and it is necessary to continue and deepen them so that the economy becomes less dependent on energy” .
–
