IMF to combine reviews of Egypt's $8 billion loan program
The International Monetary Fund on Thursday said it would combine the fifth and sixth reviews of Egypt's $8 billion support program this fall to give authorities more time to meet critical objectives of its economic reform program.
IMF spokeswoman Julie Kozack told a regular briefing that IMF staff were working with Egyptian authorities on finalizing key policy measures, particularly on the state's role in the economy.
A decision to combine the reviews, first reported by Reuters on Tuesday, could delay a new disbursement of funds to Egypt by half a year. Kozack said it was premature to discuss the level of any expected disbursement related to the combined reviews.
The International Monetary Fund approved its fourth review of the program in March, unlocking a disbursement of $1.2 billion and bringing total disbursements to about $3.5 billion.
The 46-month facility was signed in March 2024 following more than a year of severe foreign currency shortages and inflation that peaked at 38% in September 2023.
Kozack said an IMF team met with Egyptian officials in Cairo from May 6 to 18 for what she called "productive" discussions. "Egypt continues to make progress under its macroeconomic reform program, and we can say that there's been notable improvement in inflation and in the level of foreign exchange reserves, which have increased," she told reporters.