International Monetary Fund to Combine Egypt’s 5th & 6th Reviews

The International Monetary Fund (IMF) announced that it will merge the fifth and sixth reviews of Egypt’s USD 8 billion loan program into a single review, scheduled for Fall 2025.

The decision was made to allow Egyptian authorities more time to meet key reform commitments and to finalise economic policy measures, particularly those addressing the role of the state in the economy.

This move follows the completion of the program’s fourth review in March 2025, after which Egypt received a disbursement of USD 1.2 billion, raising total funding released to USD 3.5 billion. While progress has been observed in curbing inflation and improving foreign currency reserves, the IMF has emphasised that additional structural reforms remain necessary.

Key priorities identified include the reform of Egypt’s state ownership policy and the expansion of its asset diversification program, particularly in sectors marked for eventual state withdrawal. These reforms are seen as essential for encouraging private sector activity and achieving long-term economic stability.

An IMF mission that visited Cairo from May 6th to the 18th assessed the government’s progress in reducing state dominance and improving the business climate. It was noted that more time is needed to finalise certain public policy measures, especially those related to public ownership and openness to private investment.

Egypt initially entered into the Extended Fund Facility agreement with the IMF in March 2024 after experiencing a sharp foreign currency crisis and a peak inflation rate of 38% in September 2023.