The International Monetary Fund has reached a services-level agreement with Egypt on the 5th and 6th reviews of its reform program, opening the door to a new disbursement of funds.
The IMF Tuesday announced the conclusion of a preliminary agreement with Egypt on the fifth
and sixth reviews of the program supported by the Extended Credit Facility (ECF).
This services-level agreement could allow for the disbursement of approximately $2.5 billion, subject to approval by the institution’s executive board.
The announcement comes within the framework of the ongoing financing program between Cairo and the IMF, designed to support the macroeconomic and structural reforms undertaken by the Egyptian authorities.
According to the IMF, these reviews assess progress made in macroeconomic stability, fiscal discipline, and structural reforms, in a context marked by persistent pressures on the Egyptian economy.
The program supported by the Extended Credit Facility (ECF) aims to strengthen the economy’s resilience, improve governance, and foster private sector-led growth. Discussions between IMF teams and Egyptian authorities focused on fiscal policy, the exchange rate regime, inflation control, and reforms designed to improve the business climate and increase investment attractiveness.
Egyptian Prime Minister Mostafa Madbouli has held several meetings with IMF management in recent months to expedite the completion of these reviews.
IMF Managing Director Kristalina Georgieva emphasised the importance of continuing reforms to consolidate financial stability and support sustainable growth.
The expected disbursement of $2.5 billion would be part of the overall financial support program
for Egypt, which the authorities consider essential for bolstering foreign exchange reserves, stabilizing the currency, and addressing external financing needs.
The final decision will depend on the review of the proposal by the IMF Executive Board, expected in the coming weeks. If approved, this new financing would bolster international support for the Egyptian economy, which faces structural challenges and a still uncertain global economic environment.
MK/ak/ac/Sf/fss/as/APA