The International Monetary Fund (IMF) has completed two reviews for its financing arrangements with Egypt, clearing the way for the North African country to unlock some $1.8 billion in further funding to support its economic reform programme.
Egypt’s Prime Minister Mostafa Madbouly welcomed the decision, referring to it as a renewed vote of confidence in the government’s efforts to stabilise the economy and implement key reforms.
“Successful reviews are an endorsement by the IMF of the policy measures undertaken by Egypt, including exchange rate flexibility, energy price reforms, and efforts to ramp up fiscal discipline,” said Madbouly.
The extra financing would support ongoing reforms to boost investor confidence, address fiscal challenges and foster economic recovery, he said.
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The seventh review is expected to be completed after which Egypt is expected to receive about $1.5 billion under the IMF’s 48-month loan programme.
The country will also have access to some $272 million under the IMF’s Resilience and Sustainability Facility.
In 2022 Egypt signed a $3 billion loan deal with the IMF that was increased to $8 billion in 2024 as the country grappled with high inflation and a shortage of foreign currency.
Egypt’s economy had held up well despite spillover effects from the ongoing conflict in the Middle East, the IMF said, noting that the country entered the period from a stronger macroeconomic position.
But the Fund warned that major vulnerabilities remain, such as high public debt and the large footprint of the state in the economy.
