CAIRO, July 31 – The International Monetary Fund (IMF) has approved approximately $1.8 billion in new financing for Egypt after completing the seventh review of the country’s economic reform programme and a review under its Resilience and Sustainability Facility (RSF).
The approval gives Egypt immediate access to around $1.5 billion under its 48-month Extended Fund Facility (EFF) programme, alongside approximately $272 million through the RSF. The latest disbursements increase total funding received by Egypt under its current IMF arrangement to approximately $7.3 billion.
Egypt initially secured a $3 billion IMF programme in December 2022, before the package was expanded to $8 billion in March 2024 as the country battled high inflation, foreign exchange shortages and mounting economic pressures.
In a statement, the IMF said Egypt’s economy has remained resilient despite the spillover effects of the conflict in the Middle East.
According to the Fund, Egypt entered the latest regional crisis from a stronger macroeconomic position than during previous external shocks, supported by a more flexible exchange rate, fuel price adjustments and measures to contain public spending.
The IMF said Egypt’s economy expanded by 5% during the third quarter of the 2025/26 fiscal year, while full-year economic growth is projected at approximately 4.6%.
Despite the improved outlook, the Fund warned that significant vulnerabilities remain, including elevated public debt, substantial gross financing requirements and the continued dominance of the state in key sectors of the economy.
The IMF cautioned that “A renewed escalation of regional tensions could weigh on growth, raise global inflationary pressures, tighten financial conditions, and put additional pressure on the fiscal and external positions.”
The lender also noted that structural reforms aimed at expanding the role of the private sector have advanced more slowly than expected.
According to the IMF, efforts to reduce the state’s footprint in the economy and create greater opportunities for private investment, including through the divestment of state-owned assets, have progressed more slowly than anticipated and need to be accelerated.
The latest approval reinforces the IMF’s continued support for Egypt’s economic reform agenda while underscoring the importance of maintaining fiscal discipline and advancing structural reforms to strengthen long-term economic resilience.
