The International Monetary Fund (IMF) has concluded its latest mission to Egypt, reporting significant advancements in policy discussions for the fourth review of its $8 billion loan program. This review, if approved, could unlock more than $1.2 billion in financing for the economically struggling nation.
This marks the fourth assessment under Egypt’s 46-month loan arrangement, initially approved in 2022. The program has been a crucial lifeline for the country as it faces soaring inflation and critical foreign currency shortages, compounded by global economic pressures.
The IMF commended Egypt’s efforts in enacting key reforms to stabilize its economy. Among these measures is the unification of the exchange rate, a move aimed at easing imports and addressing market distortions. The Central Bank of Egypt reinforced its commitment to maintaining a flexible exchange rate system, which remains a cornerstone of the program.
In a statement earlier on Wednesday, Egyptian Prime Minister Mostafa Madbouly revealed that the government had requested changes to the loan program’s targets. These adjustments, he noted, would apply not only to the current year but to the entire duration of the agreement. However, further details on the proposed changes were not disclosed.
The IMF confirmed that discussions will continue in the coming days to finalize the remaining reforms and policies necessary for the completion of the fourth review. Approval of the review would provide Egypt with much-needed funding to stabilize its economy and navigate the ongoing crisis.
