The International Monetary Fund (IMF) will initiate a review of Egypt’s loan program on Tuesday, according to Egyptian Prime Minister Mostafa Madbouly, who announced this alongside IMF Managing Director Kristalina Georgieva at a press conference on Sunday.
This fourth review under Egypt’s ongoing IMF agreement, now extended to $8 billion, could unlock more than $1.2 billion in new financing to help stabilize the nation’s economy amidst high inflation and severe foreign currency shortages.
Madbouly underscored Egypt’s commitment to a productive relationship with the IMF, expressing confidence in continued “successful and fruitful cooperation.”
Georgieva, echoing the collaborative spirit, highlighted that this round of talks will focus not only on immediate financial stability but also on Egypt’s goals for economic greening and possible access to the IMF’s Resilience and Sustainability Facility (RSF), which could potentially release an additional $1 billion.
As the region faces heightened economic pressures, President Abdel Fattah al-Sisi recently suggested that Egypt might need to reassess the expanded loan program if global institutions don’t account for these unique challenges. Madbouly later clarified that recent discussions with the IMF at its October meetings were centered on adjusting Egypt’s targets and timelines rather than seeking additional funds.
The IMF’s last review in July reported progress, noting easing inflationary pressures and an improvement in foreign exchange conditions. However, it also urged Egypt to expedite its plans to divest state-owned enterprises and enhance regulatory reforms to level the competitive playing field.
