The International Monetary Fund (IMF) has completed two reviews for its financing arrangements with Egypt, paving the way for the North African country to unlock around $1.8 billion in additional 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.
He said the extra financing would back ongoing reforms to raise investor confidence, tackle fiscal challenges and support economic recovery.
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.
Read Also: Nothing wrong with Nigeria borrowing, says Information Minister
The country will also get some $272 million from the IMF’s Resilience and Sustainability Facility.
In 2022, Egypt signed a $3 billion loan deal with the IMF, which was increased to $8 billion in 2024 as the country struggled with high inflation and foreign currency shortages.
The IMF said Egypt’s economy had held up well despite spillover effects from the ongoing conflict in the Middle East, 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.
