Egypt has made “clear progress on its macroeconomic reform program, with notable improvements in inflation and foreign exchange reserves.”
The International Monetary Fund (IMF) has reiterated its commitment to supporting Egypt as the country moves forward with the fifth review of its $8 billion Extended Fund Facility (EFF) program.
A team from the IMF visited Cairo earlier this month to conduct discussions with Egyptian authorities regarding the review, which is expected to unlock a $1.2 billion disbursement once completed.
The fifth review is the second to be conducted since the loan amount was expanded from $3 billion to $8 billion in March.
“I just want to say that the Fund remains committed to supporting Egypt in building its economic resilience and fostering higher private sector-led growth,” said Julie Kozack, Director of the IMF’s Communications Department, during a recent press briefing.
She noted that Egypt has made “clear progress on its macroeconomic reform program, with notable improvements in inflation and foreign exchange reserves.”
Kozack explained that IMF staff have spent the past few weeks in “productive discussions with the Egyptian authorities on economic performance and policies under the EFF.” While the field portion of the mission has concluded, virtual meetings will continue in order to finalize policy agreements necessary to complete the review.
“The mission finished discussions in the field, and the meetings will continue virtually to finalize agreement on remaining policies and reforms that could support completion of the Fifth Review,” she stated.
Looking ahead, Kozack emphasized the importance of structural reforms to ensure Egypt’s economic momentum continues. “As Egypt's macroeconomic stabilization is taking hold, efforts must now focus on accelerating and deepening reforms that will reduce the footprint of the state in the Egyptian economy, level the playing field, and improve the business environment.”
The fifth review comes at a critical time for Egypt, as it approaches the end of its fiscal year in June while grappling with regional and global economic challenges. Completion of the review is a key step toward securing further IMF support and reinforcing investor confidence.
