The board of the International Monetary Fund (IMF) approved, during its meeting on February 25, the fifth and sixth reviews of the program under the Extended Fund Facility (EFF), as well as the first review under the Resilience and Sustainability Program (RSF). This decision paves the way for the disbursement of a new tranche of financing totaling $2.3 billion to Egypt, according to a statement released by the institution.
Following this approval, Egypt is authorized to make a new drawdown under the “extended financing” and “resilience and sustainability” mechanisms, in accordance with the economic reform program agreed with the IMF.
The IMF justifies its decision by the gradual improvement in the country’s macroeconomic situation. Egyptian authorities have implemented rigorous monetary and fiscal policies, accompanied by greater exchange rate flexibility. These measures have helped restore macroeconomic stability, contain inflation, and strengthen the country’s external position.
However, the institution emphasizes that progress in structural reforms remains uneven. It stresses the need to accelerate their implementation, particularly by reducing the economic role of the state and establishing more equitable competition conditions, in order to promote sustainable growth driven by the private sector and more inclusive.
Financial support spread over several years
Over the past three years, Egypt has already mobilized around $3.2 billion in four tranches, out of a total program of $8 billion, aimed at supporting economic reforms and consolidating financial stability.
Last March, the IMF also approved an additional financing request of $1.3 billion under the resilience and sustainability program. This support aims to accompany the implementation of the National Strategy on Climate Change by 2050 and support the country’s transition to a more sustainable economy.
