In a big relief for Egypt, the International Monetary Fund (IMF) has completed two reviews of some facilities for the North African country, giving Cairo access to about USD 1.8 billion.
As per the new arrangement, Egypt will get about USD 1.5 billion under the IMF’s 48-month loan programme after completing the seventh review, along with roughly USD 272 million under the “Resilience and Sustainability Facility,” bringing total disbursements under the North African country’s current arrangement with the fund to about USD 7.3 billion.
Egypt agreed to a USD 3 billion loan with the IMF in December 2022. The programme, in March 2024, was expanded to USD 8 billion, amid the country grappling with high inflation and foreign currency shortages.
The IMF has found Egypt’s economy resilient enough to deal with the spillovers from the Iran war.
“The country had entered the regional conflict from a stronger macroeconomic position than in previous external shocks, helped by a more flexible exchange rate, fuel-price adjustments and kerbs on state spending,” the global monetary body added.
“Economic growth reached 5% in the third quarter of the 2025/26 fiscal year, while growth for the full year is projected at about 4.6%. However, important vulnerabilities remain, the fund warned, including public debt, large gross financing needs, and a sizable state footprint,” it added further.
However, As per IMF, heightened uncertainty will continue to weigh on Egypt’s growth prospects in the near term, with GDP direction projected to moderate to 4.4% for the 2026/27 fiscal year as a result of lagged effects of the regional conflict, including weaker investment and higher input costs.
“A renewed escalation of regional tensions could weigh on growth, raise global inflationary pressures, tighten financial conditions, and put additional pressure on the fiscal and external positions,” the IMF observed.
“If a ceasefire agreement takes place, on a permanent basis, that will help lower energy prices and improve investor sentiment for Egypt and the broader region,” the IMF said.
Nigel Clarke, Deputy Managing Director and Acting Chair of the IMF, also underscored the importance of continued fiscal discipline and accelerating reforms, including implementation of the “State-Ownership Policy” and the divestment agenda, to maintain the North African country’s macroeconomic stability and resilience.
“Efforts to reduce the state’s role in the economy and create greater space for private sector investment, including through divestment of state assets, have progressed more slowly than anticipated and need to be accelerated,” he said.