IMF Completes Egypt Reviews, Unlocks $1.8 Billion

The International Monetary Fund announced Thursday it has completed two reviews of its programs with Egypt, unlocking access to about $1.8 billion in funding. The country is set to receive approximately $1.5 billion under its existing 48-month loan program, following the seventh review. An additional $272 million will be disbursed from the Resilience and Sustainability Facility.

Egypt initially secured a $3 billion loan from the IMF in December 2022. This arrangement was later expanded to $8 billion in March 2024, as the nation grappled with high inflation and a shortage of foreign currency. The IMF noted that Egypt's economy has shown resilience against spillovers from the conflict in the Middle East, benefiting from a more flexible exchange rate, adjusted fuel prices, and controlled state spending.

Economic growth in Egypt reached 5% in the third quarter of the 2025/26 fiscal year, with projections for the full year at around 4.6%. However, the IMF cautioned that significant vulnerabilities persist. These include the level of public debt, substantial financing needs, and the considerable footprint of the state in the economy.

The fund also highlighted the potential impact of renewed regional tensions, which could negatively affect growth, increase global inflation, tighten financial conditions, and strain Egypt's fiscal and external positions. The IMF urged acceleration in efforts to reduce the state's economic role and create more opportunities for private sector investment, particularly through the divestment of state assets, noting that progress in these areas has been slower than anticipated.