The International Monetary Fund (IMF) and Egypt have reached a staff-level agreement, paving the way for the potential release of $1.2 billion under the fourth review of its extended fund facility. Final disbursement of the loan is contingent upon approval by the IMF’s executive board.
“Egyptian authorities have continued to implement key policies to preserve macroeconomic stability, despite ongoing regional tensions causing a sharp decline in Suez Canal receipts,” noted IMF mission chief for Egypt, Ivanna Vladkova Hollar.
The agreement underscores the urgency of accelerating reforms to improve Egypt’s business environment and position the private sector as the primary driver of economic growth. Hollar emphasized the importance of decisive measures to create a level playing field, reduce the state’s economic dominance, and bolster private sector confidence to attract foreign investment. 
Despite facing global economic pressures, Egypt has committed to advancing its divestment program to lower its substantial debt burden. The Central Bank of Egypt reaffirmed its dedication to maintaining a flexible exchange rate regime, cushioning the economy against external shocks, and upholding tight monetary policies to ease inflationary pressures.
Hollar further stated that the central bank would modernize its operations, aiming for a gradual shift toward a comprehensive inflation-targeting framework.
In March, Egypt secured an expanded $8 billion loan from the IMF after agreeing to implement a series of structural reforms and policies. This followed a $3 billion, 46-month extended fund facility agreement signed in December 2022.
As Egypt progresses through its reform program, the IMF continues to spotlight the importance of fostering private sector-led growth to unlock the country’s full economic potential.
Read More:
