IMF strikes initial deal, unlocks $2.5 billion for Egypt’s economic reform

The International Monetary Fund has reached a pivotal staff-level agreement with Egyptian authorities, clearing the path for the disbursement of approximately $2.5 billion in critical funding. This development marks the successful completion of the fifth and sixth reviews under Egypt’s Extended Fund Facility arrangement alongside the first review under the Resilience and Sustainability Facility.

This financial injection represents the latest phase in Egypt’s comprehensive economic reform program, which began with an expanded $8 billion support package negotiated in March 2024. The North African nation has been grappling with one of its most severe economic crises in modern history, prompting aggressive stabilization measures and structural adjustments.

Ivanna Vladkova Hollar, the IMF’s mission chief for Egypt, confirmed that these stabilization initiatives have yielded substantial gains, with the Egyptian economy demonstrating signs of robust expansion. “The Egyptian economy is showing signs of strong growth,” Hollar stated, while emphasizing that “efforts to reduce the role of the state need to be accelerated” moving forward.

The funding package combines resources from both the expanded $8 billion loan facility and an additional $1.3 billion financing arrangement approved earlier this year. The final approval rests with the IMF’s executive board, which will conduct a comprehensive evaluation before formally releasing the funds.

Egypt’s reform agenda has centered on economic liberalization policies designed to address macroeconomic imbalances and attract foreign investment. The country’s commitment to these reforms has positioned it to access continued international financial support during its economic transition.