IMF Board to Review Egypt Loan Request on March 10th
An agreement on the fourth review has already been reached, paving the way for the potential disbursement of USD 1.2 billion.
The International Monetary Fund (IMF) is set to review Egypt’s request for a loan under the Sustainability and Resilience Fund (RSF) on March 10th, alongside the fourth review of the country’s USD 8 billion Extended Fund Facility. An agreement on the fourth review had already been reached, paving the way for the potential disbursement of USD 1.2 billion, pending approval from the IMF’s executive board.
Discussions between Egyptian authorities and the IMF took place in person from November 6th to the 20th, 2024, followed by virtual negotiations that culminated in the recent agreement. As part of the ongoing IMF program, Egypt has been working to restructure its medium-term financial commitments, aiming to align with the fund’s requirements while stabilising its economy. The IMF has reaffirmed its commitment to supporting Egypt’s economic reform efforts, emphasizing the importance of continued progress in implementing mandated reforms to strengthen the country’s financial position.
Despite these developments, the IMF has revised Egypt’s economic growth projections, lowering the forecast for the 2024-2025 fiscal year to 3.6%, a 0.5 percentage point decrease from previous estimates. Growth is expected to rise to 4.1% the following year.
Meanwhile, Egyptian authorities have introduced a USD 4 billion social support package, which includes an increase in the minimum wage to EGP 7,000, higher pension payments, and expanded aid programs. The measures are intended to ease financial pressures on households amid inflation, particularly during Ramadan and the upcoming fiscal year.
