The International Monetary Fund (IMF) has concluded two reviews of its financing arrangements with Egypt, paving the way for the North African country to access an additional $1.8 billion in funding to support its economic reform program.
Prime Minister of Egypt Mostafa Madbouly welcomed the decision, saying it was a renewed vote of confidence in the government’s efforts to stabilise the economy and implement key reforms.
Madbouly said the successful reviews demonstrate the IMF’s endorsement of Egypt’s policy measures, including exchange rate flexibility, energy price reforms, and efforts to bolster fiscal discipline.
The extra financing would help to continue reforms aimed at increasing investor confidence, dealing with fiscal challenges and encouraging economic recovery, he said.
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Egypt is expected to receive about $1.5 billion under the IMF’s 48-month loan programme after the completion of the seventh review.
The country will also benefit from some $272 million under 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 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 had 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.