The International Monetary Fund (IMF) is considering merging its fifth and sixth reviews of Egypt’s loan program, a move that could delay a $1.2 billion disbursement by at least six months, according to Reuters.
The potential delay is linked to concerns over the pace of Egypt’s structural reforms, which the IMF considers insufficient in meeting the program’s targets.
Although the IMF completed its last review in March—resulting in a disbursement—the mission that arrived in Cairo in May for the fifth review has yet to give its approval.
In March 2024, the IMF expanded its financial support to Egypt from $3 billion to $8 billion to help the country cope with soaring inflation and the economic fallout from the wars in Ukraine and Gaza.
The program requires key financial reforms and the privatisation of state assets, but Egypt reportedly failed to meet half of its structural benchmarks in the last two evaluations.
A postponement of the fifth review would push the next disbursement beyond the summer, with the IMF Executive Board not scheduled to meet again before December.
Meanwhile, on Sunday, the Egyptian Parliament approved the extension of value-added tax (VAT) to several key sectors, including construction and oil—a move seen as potentially paving the way for the IMF’s next report.
MK/te/sf/lb/as/APA