The IMF will start reviewing Egypt’s loan package on Tuesday

During a news conference with IMF managing director Kristalina Georgieva on Sunday, Egyptian Prime Minister Mostafa Madbouly said that the IMF will start reviewing Egypt’s loan program on Tuesday.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorized in 2022 and increased to $8 billion this year following an economic crisis characterized by high inflation and chronic shortages of foreign currency. It may unleash more than $1.2 billion in financing.

Additionally, Madbouly stated that Egypt “expects continued successful and fruitful partnership in the coming period” and underlined the importance of mutual cooperation with the IMF.

Georgieva also emphasized the present global issues and commended the fund’s collaboration with Egypt.

“The IMF will also explore ways to support Egypt’s goals in the area of greening the economy and Egypt’s access to the Resilience and Sustainability Facility in pursuit of this effort during its talks with Egypt next week,” she said.

Since 2022, Egypt has applied for funding under the RSF with the aim of obtaining an additional $1 billion USD.

Abdel Fattah al-Sisi, the president of Egypt, recently issued a warning, saying that if foreign organizations fail to take into account the unique difficulties the area is presently facing, Egypt could have to reconsider its enlarged loan program.

Madbouly subsequently stated that discussions with the IMF at the fund’s annual meetings in October were intended to reevaluate Egypt’s commitments, goals, and timelines rather than to discuss further funding.

In July, the IMF concluded its third assessment, stating that budgetary objectives (including those pertaining to expenditure on major infrastructure projects) had been reached, foreign currency shortages had been eradicated, and inflationary pressures were steadily decreasing.

It also emphasized the necessity of stepping up efforts to expedite a program of state-owned firm divestiture and implement reforms to stop them from engaging in unfair competition.