IMF Boosts Egypt's Economic Stability with $1.2 Billion Disbursement

The International Monetary Fund has approved a $1.2 billion disbursement to Egypt after completing the fourth review of Egypt's economic reform program. The IMF also granted Egypt access to the resilience and sustainability facility, providing an additional $1.3 billion, aiding in reducing inflation and stabilizing the economy.

The International Monetary Fund (IMF) has given a significant boost to Egypt's economic stability by approving a $1.2 billion disbursement. This follows the completion of the fourth review of the country's $8 billion economic reform program.

In addition, the IMF's executive board has sanctioned Egypt's request for an arrangement under the resilience and sustainability facility (RSF), offering access to an added $1.3 billion. Since 2022, Cairo has sought financing under the RSF, aiming to unlock up to an extra $1 billion to further strengthen its economy.

On a positive note, Egypt reported a significant reduction in headline inflation in February, largely due to financial reforms undertaken as part of the IMF support agreement. This economic stabilization is expected to attract foreign investors to continue their commitment to holding Egyptian treasury bonds. Despite previous struggles, including a drop in Suez Canal revenue due to regional tensions, Egypt appears to be stabilizing through international support and fiscal reforms.

(With inputs from agencies.)