IMF approves $1.8 billion for Egypt after completing programme reviews

08:30

By: Sahili Aya

IMF approves $1.8 billion for Egypt after completing programme reviews

Egypt has secured access to approximately $1.8 billion in fresh financing after the International Monetary Fund (IMF) completed two key reviews of the country's economic support programmes.

The latest approval provides a significant financial boost as Cairo continues implementing reforms aimed at stabilizing the economy, strengthening public finances and improving resilience following years of inflationary pressures and foreign currency shortages.

The IMF said the latest disbursement reflects continued progress under Egypt's reform agenda despite persistent regional and global economic challenges.

Majority of funding comes through the extended loan programme

Following the successful completion of the seventh review of Egypt's 48-month Extended Fund Facility, the country will receive approximately $1.5 billion.

In addition, the IMF approved around $272 million under the Resilience and Sustainability Facility, a programme designed to help member countries strengthen long-term economic resilience while supporting climate-related reforms.

With the latest approval, total IMF disbursements to Egypt under the current arrangement now reach approximately $7.3 billion.

Economic reforms continue after programme expansion

Egypt initially reached a $3 billion agreement with the IMF in December 2022 as authorities sought international support to address mounting macroeconomic challenges.

The programme was significantly expanded to $8 billion in March 2024, when the country was facing elevated inflation, pressure on foreign exchange reserves and shortages of hard currency.

Since then, the government has pursued a series of economic reforms intended to improve fiscal stability, attract investment and restore confidence in financial markets.

IMF highlights resilience despite regional tensions

According to the IMF, Egypt's economy has demonstrated resilience despite the broader impact of geopolitical instability in the Middle East.

Regional conflicts have affected trade routes, investor sentiment and external financing conditions across the region. Nevertheless, the Fund said Egypt has continued to make progress under its reform programme, allowing the latest reviews to be completed successfully.

The additional financing is expected to support Egypt's ongoing economic adjustment efforts while providing greater financial flexibility as the government continues implementing structural reforms.