IMF Boosts Egypt's Economic Resilience with $2.3 Billion Disbursement

The IMF has completed multiple reviews of Egypt's economic reform programme, enabling the dispersal of $2.3 billion. Despite gains in inflation control and foreign currency availability, structural reforms lag, notably in state asset divestment, with the IMF urging faster action under a broader $8 billion loan framework.

The International Monetary Fund (IMF) announced the completion of several assessments related to Egypt's economic reform programme, including one under the Resilience and Sustainability Facility (RSF). This development has facilitated a new disbursement of approximately $2.3 billion to Egypt.

The IMF highlighted that upon completion of its fifth and sixth reviews, Egypt is eligible to receive around $2 billion as part of the 46-month loan plan, supplemented by $273 million under the RSF. With these recent disbursements, Egypt's total draw under both frameworks reaches approximately $5.2 billion. Originally a $3 billion arrangement instated in December 2022, the programme was increased to $8 billion in March 2024, amid escalating inflation and currency scarcities.

Currently, Egypt presents an improved macroeconomic environment, with inflation substantially decreasing from a peak of 38% in September 2023 to 11.9% by January. The foreign currency bottleneck has similarly been alleviated, assisted by IMF support, augmented tourism revenues, and substantial investments from Gulf nations. While the IMF commends progress, it also notes that structural reforms, especially regarding state asset privatization, have not progressed as anticipated.