CAIRO: The International Monetary Fund (IMF) will commence its assessment of Egypt’s loan program on Tuesday, as announced by Egyptian Prime Minister Mostafa Madbouly during a Sunday press conference with IMF Managing Director Kristalina Georgieva.
This review, which has the potential to release over $1.2 billion in funding, marks the fourth evaluation under Egypt’s current 46-month IMF loan program. Initially approved in 2022 and later expanded to $8 billion this year, the program was necessitated by an economic crisis characterized by high inflation and severe foreign currency shortages.
Madbouly underscored the collaborative relationship with the IMF, expressing Egypt’s anticipation for a “continuously successful and fruitful partnership in the upcoming period.”
Georgieva echoed these sentiments, commending the fund’s cooperation with Egypt and addressing the global economic challenges at hand. She highlighted that the upcoming IMF discussions with Egypt will also focus on supporting the nation’s goals in transitioning to a greener economy and enhancing Egypt’s access to the Resilience and Sustainability Facility (RSF).
Egypt has been seeking RSF financing since 2022, with aspirations to secure up to an additional $1 billion. Egyptian President Abdel Fattah El-Sisi recently warned that Egypt might need to reconsider its expanded loan program if international institutions fail to account for the extraordinary challenges currently facing the region.
Madbouly clarified that discussions with the IMF during their annual meetings in October were not centered on additional financing but rather aimed at reevaluating Egypt’s commitments, targets, and timelines.
Upon completing its third review in July, the IMF reported that inflationary pressures were easing, foreign exchange shortages had been resolved, and fiscal targets—including those tied to large infrastructure projects—were met. The report also emphasized the necessity for intensified efforts to expedite the divestment of state-owned enterprises and implement reforms to prevent unfair competitive practices.
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