As Egypt faces persistent inflation and currency challenges, the IMF’s fourth review could unlock $1.2 billion in funding. The discussions will focus on economic resilience, sustainability initiatives, and state-owned enterprise reforms as part of Egypt’s ongoing recovery strategy.
This review could pave the way for the release of over $1.2 billion in financing and represents the fourth assessment under Egypt’s current 46-month IMF loan program, which was initially approved in 2022 and expanded to $8 billion this year following an economic crisis characterized by high inflation and severe foreign currency shortages. Madbouly emphasized the productive collaboration with the IMF, expressing optimism for continued successful partnerships in the future.
Georgieva also commended the cooperation between the IMF and Egypt, highlighting the ongoing global challenges. She noted that the upcoming discussions will focus on supporting Egypt’s initiatives in greening its economy and accessing the Resilience and Sustainability Facility (RSF). Since 2022, Egypt has sought financing under the RSF, aiming to secure an additional $1 billion in support. Recently, President Abdel Fattah al-Sisi warned that Egypt may need to reassess its expanded loan program if international institutions fail to recognize the exceptional challenges facing the region.
During the IMF’s annual meetings in October, Madbouly stated that discussions with the fund would concentrate on reviewing Egypt’s commitments, goals, and timelines rather than seeking further financing.
Following the completion of the IMF’s third review in July, it was reported that inflationary pressures were beginning to ease, foreign exchange shortages had been resolved, and fiscal targets, particularly those related to spending on significant infrastructure projects, had been met. The IMF underscored the necessity for enhanced efforts to expedite the divestment of state-owned enterprises and to implement reforms that would prevent unfair competitive practices.
