The International Monetary Fund (IMF) has approved a $1.2 billion disbursement for Egypt after completing its fourth review of the country’s economic reform program.
In a statement released Tuesday, the IMF confirmed the review was finalized on Monday, allowing Egyptian authorities to access the funds immediately.
Additionally, the IMF granted Egypt’s request for an arrangement under the Resilience and Sustainability Facility, providing access to another $1.3 billion.
Egyptians continue to face economic hardships, with soaring inflation exacerbating daily living costs.
Over the past year, the country has witnessed sharp increases in fuel prices, subway fares, and a declining value of the Egyptian pound against foreign currencies.
In an effort to ease financial strain, the government recently raised the minimum wage for public sector workers.
Starting in July, their monthly pay will increase to 7,000 Egyptian pounds ($138), up from 6,000 pounds ($118.58), aligning with private sector wage hikes implemented in March.
Fuel prices surged in October, with increases ranging between 10% and 17%.
The cost of diesel, crucial for public transportation, rose from 11.5 pounds ($0.23) to 13.5 pounds ($0.25) per liter.
Similarly, 92-octane gasoline climbed to 15.25 pounds ($0.31) from 13.75 pounds ($0.28), further driving up costs of goods and services.
Egypt’s deal with the IMF last spring expanded its bailout package to $8 billion.
The government’s economic measures, including price hikes and subsidy reductions, align with IMF conditions for continued financial support.