CAIRO, Feb 26 – The International Monetary Fund has approved approximately $2.3 billion in new financing for Egypt after completing key reviews of the country’s economic reform programme and its Resilience and Sustainability Facility.
The disbursement includes about $2 billion under Egypt’s 46-month Extended Fund Facility and an additional $273 million through the sustainability facility, bringing total disbursements under both programmes to roughly $5.2 billion.
Egypt initially secured a $3 billion IMF programme in December 2022, which was later expanded to $8 billion in March 2024 as authorities confronted surging inflation, foreign currency shortages, and widening external imbalances. The programme is scheduled to conclude in December.
The IMF said Egypt’s macroeconomic conditions have improved significantly in recent months, supported by tight monetary and fiscal policies and a more flexible exchange rate regime. These measures have helped reduce inflation, strengthen foreign exchange reserves, and stabilise the country’s external position.
Inflation has declined sharply from its peak of 38% in September 2023, with urban consumer inflation easing to 11.9% in January, reflecting improved price stability.
External financing conditions have also strengthened, supported by robust tourism revenues, strong remittance inflows, and major investment agreements with Gulf partners, including the United Arab Emirates, worth tens of billions of dollars.
Despite the progress, the IMF warned that structural reforms remain uneven, particularly efforts to reduce the state’s role in the economy through asset sales and privatisation. High public debt levels and significant financing needs continue to constrain fiscal flexibility and weigh on medium-term growth prospects.
Egypt has introduced legislative amendments aimed at accelerating state asset sales, as authorities seek to deepen reforms, attract investment, and sustain macroeconomic stability.
