The International Monetary Fund (IMF) is set to begin its postponed fourth review of Egypt’s 46-month loan programme this week, Prime Minister Mostafa Madbouly confirmed on Sunday. Initially scheduled for September, the review will now unlock $1.2 billion in fresh financing for Egypt under an expanded agreement that raised the loan total from $3 billion to $8 billion to support the country’s economic reforms.
The review kicks off Tuesday, involving Egypt’s central bank and key ministries, following discussions in Cairo between Madbouly and IMF Managing Director Kristalina Georgieva. She commended Egypt’s commitment to reform, highlighting a shift to a flexible exchange rate, enhanced private sector participation, and improved social protection measures.
Despite the economic toll of regional conflicts, Georgieva acknowledged that external conditions are challenging, citing the impact on Egypt’s economy from crises in neighbouring regions. She also projected inflation would decrease to 16-17% by the end of the fiscal year in June 2025 after reaching a high of 37%.
President Abdel Fattah al-Sisi, who also met Georgieva, reiterated Egypt’s focus on alleviating inflation pressures, attracting investments, and empowering the private sector. However, he signalled last month that the government could reconsider the loan programme if it imposed unsustainable public pressure due to regional instability, especially the ongoing Gaza conflict.
IMF Middle East Director Jihad Azour pointed to additional economic challenges, including a substantial drop in Suez Canal revenue, which has been affected by the reduction in trade volume through the canal, partly due to security concerns from nearby conflicts.
