The International Monetary Fund (IMF) will commence its review of Egypt’s $8 billion loan program on Tuesday, as announced by Prime Minister Mostafa Madbouly.
This fourth review could unlock more than $1.2 billion in additional financing for the country.
The program, approved in 2022 and expanded this year, aims to address Egypt’s economic crisis, characterized by high inflation and severe foreign currency shortages.
Prime Minister Madbouly emphasized the strong cooperation between Egypt and the IMF, expressing hopes for continued fruitful partnership.
IMF Managing Director Kristalina Georgieva also praised the collaboration and acknowledged the global economic challenges.
The upcoming review will not only assess Egypt’s economic progress but also explore ways to support the country’s green economy initiatives.
Egypt seeks to access the IMF’s Resilience and Sustainability Facility (RSF) to fund these efforts.
President Abdel Fattah al-Sisi recently warned that Egypt might need to reconsider its loan program if international institutions fail to account for the region’s exceptional challenges.
While the October IMF annual meetings did not discuss additional financing, they focused on reassessing Egypt’s commitments, targets, and timelines.
The IMF’s third review in July noted progress in reducing inflationary pressures, eliminating foreign exchange shortages, and meeting fiscal targets.
However, it emphasized the need for accelerated divestment of state-owned enterprises and reforms to prevent unfair competition.