The International Monetary Fund (IMF) has completed two reviews of its financing arrangements with Egypt, clearing the way for the North African country to access about $1.8 billion in additional funding to support its economic reform programme.
Egypt’s Prime Minister, Mostafa Madbouly, welcomed the decision, describing it as a renewed vote of confidence in the government’s efforts to stabilise the economy and implement key reforms.
Madbouly said the successful reviews reflected the IMF’s endorsement of Egypt’s policy measures, including exchange rate flexibility, energy price reforms and efforts to strengthen fiscal discipline.
He noted that the additional financing would support ongoing reforms aimed at boosting investor confidence, addressing fiscal challenges and sustaining economic recovery.
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Following the completion of the seventh review, Egypt is expected to receive about $1.5 billion under the IMF’s 48-month loan programme.
The country will also gain access to approximately $272 million under the IMF’s Resilience and Sustainability Facility.
Egypt secured a $3 billion loan agreement with the IMF in 2022, which was expanded to $8 billion in 2024 as the country faced high inflation and shortages of foreign currency.
The IMF said Egypt’s economy had remained resilient despite spillover effects from the ongoing conflict in the Middle East, noting that the country entered the period from a stronger macroeconomic position.
However, the Fund cautioned that significant vulnerabilities persist, including high public debt levels and the substantial role of the state in the economy.
Africanews
