IMF approves Egypt's $1.8B aid
The International Monetary Fund announced the completion of the seventh review of the loan program extended to Egypt, enabling the Egyptian government to access new financing of approximately $1.8 billion, including $1.5 billion under the Extended Fund Facility and $272 million through the Resilience and Sustainability Facility. As a result, Egypt’s total funding received under these two programs has reached around $7.3 billion. The Fund confirmed that the Egyptian economy demonstrated resilience to the indirect impacts of the conflict in the Middle East, thanks to flexible exchange rate policies, gradual fuel price hikes, and reduced government spending, which contributed to a 5% economic growth in the third quarter of the 2025-2026 fiscal year, with an expected growth of 4.6% for the entire year. However, risks remain related to rising public debt, financing needs, and the expanding government role in economic activity, with a warning that escalating regional tensions could put pressure on growth, increase inflation, and strain Egypt's fiscal and external stability. The Fund also noted that efforts to reduce the state's role in the economy and open up space for the private sector are progressing at a slower pace than expected. It called for speeding up structural reforms to support growth, create more jobs, and leverage asset sales programs to boost fiscal resources, reduce debt, and stimulate the private sector.
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