The International Monetary Fund (IMF) has announced that it will combine the fifth and sixth reviews of Egypt’s $8 billion loan program this fall. This decision gives Egyptian authorities more time to implement critical reforms, especially regarding the state’s economic role.
Julie Kozack, IMF spokesperson, explained during a press briefing that staff are working closely with Egyptian officials to finalise essential policy measures. These reforms are central to the country’s broader macroeconomic stability efforts.
Disbursement Schedule Adjusted to Support Reform Progress
In March, the IMF completed its fourth program review, triggering a $1.2 billion disbursement. That brought Egypt’s total received funding to $3.5 billion. Although the next tranche may be delayed by up to six months, the IMF maintains a strong working relationship with Egyptian authorities.
Kozack noted, “It’s too early to specify the size of any disbursement tied to the combined reviews.”
The 46-month loan agreement began in March 2024, following prolonged foreign currency shortages and a sharp rise in inflation that peaked at 38% in September 2023.
Egypt Shows Progress but Needs Deeper Reform
According to Kozack, Egypt continues to advance its macroeconomic goals. Inflation has eased, and foreign exchange reserves have grown. Nevertheless, the IMF urges Cairo to accelerate structural reforms.
The country must scale back state involvement in the economy and improve the business environment. These changes are vital to attract investment and foster resilience.
“Key priorities include advancing the state ownership policy and diversifying assets in sectors where the state has pledged to withdraw,” Kozack stated. “Such steps empower the private sector and support sustainable growth.”
IMF Encourages Stronger Private Sector Role
Between May 6 and 18, an IMF delegation held meetings with Egyptian officials in Cairo. Kozack described the sessions as “productive,” noting that authorities had shown commitment but needed more time to implement core policies.
The combined review approach offers Egypt additional flexibility. It allows the government to complete important reforms while keeping the IMF’s support in place.
By encouraging private sector-led development, the IMF hopes to strengthen Egypt’s long-term economic position. “With continued reform, Egypt can improve investor confidence and ensure economic resilience,” Kozack concluded.
