The decision allows Cairo to draw approximately $2 billion under the Extended Fund Facility and about $273 million under the Resilience and Sustainability Facility, bringing Egypt’s total disbursements under both arrangements to $5.21 billion.
The Executive Board of the International Monetary Fund has completed the combined fifth and sixth reviews of Egypt’s economic reform program under the Extended Fund Facility, along with the first review under the Resilience and Sustainability Facility, enabling Egypt to immediately access around $2.3 billion in financing.
The decision allows Cairo to draw approximately $2 billion under the Extended Fund Facility and about $273 million under the Resilience and Sustainability Facility, bringing Egypt’s total disbursements under both arrangements to $5.21 billion. Egypt’s 46-month Extended Fund Facility program, approved in December 2022, has also been extended until December 15, 2026.
According to the International Monetary Fund, Egypt’s macroeconomic conditions have shown notable improvement as stabilization policies continue to take effect. Real GDP growth rose to 4.4% in fiscal year 2024/2025, supported by a broad-based economic recovery, while inflation declined to 11.9% in January 2026, reflecting tight monetary and fiscal policies.
The current account deficit narrowed to 4.2% of GDP, driven by stronger remittances and tourism revenues. Market confidence also improved, as reflected in successful international bond issuances, rising foreign direct investment inflows, and record nonresident participation in domestic debt markets. Gross international reserves increased from $54.9 billion in December 2024 to around $59.2 billion by December 2025, supported by improved external balances and a flexible exchange rate regime.
Fiscal performance also strengthened, aided by reduced public investment and higher tax revenues. However, the International Monetary Fund noted that the primary balance fell short of program targets, mainly due to delays in planned state divestment proceeds.
Progress under the Resilience and Sustainability Facility has remained on track, with authorities completing key reform steps, including the publication of a renewable energy implementation roadmap and the issuance of banking directives to monitor and report exposure to climate transition risks.
Despite macroeconomic stabilization, the Fund highlighted that structural reform progress remains uneven, particularly in reducing the state’s footprint and advancing divestment plans. High public debt levels and elevated financing needs continue to limit fiscal space and weigh on medium-term growth prospects.
Looking ahead, the International Monetary Fund stressed that Egypt’s priority is transitioning toward a private sector-led, sustainable growth model, supported by exchange rate flexibility, inflation control, stronger domestic revenue mobilization, comprehensive debt management, and enhanced social protection.
At the conclusion of the Executive Board’s discussion, Deputy Managing Director Nigel Clarke said that stabilization measures were delivering tangible results, with growth picking up, inflation moderating, and external conditions improving. However, he stressed that accelerating deeper reforms, particularly divestment in non-strategic sectors and debt management, remains critical to attract private investment and ensure sustainable growth.
Clarke emphasized that maintaining exchange rate flexibility, strengthening fiscal sustainability through tax reform, and enhancing governance in state-owned banks are essential to safeguarding economic stability. He also highlighted the importance of advancing climate reforms and reducing the state’s role in the economy to foster inclusive, export-led growth.
The Fund cautioned that downside risks persist, including regional geopolitical tensions, tighter global financial conditions, and delays in structural and energy sector reforms. On the upside, a faster recovery in Suez Canal activity, higher hydrocarbon production, and Gulf-backed mega projects could support growth and strengthen Egypt’s external and fiscal positions.
