Reforms clear path for $2.3bn IMF disbursement

Egypt is on the verge of securing approximately $2.3 billion in new financing following successful progress on multiple reviews of its International Monetary Fund (IMF) programs.

The anticipated disbursement comes as the IMF evaluates Cairo’s commitment to sweeping institutional reforms and expanded social safety nets.

During a press briefing at IMF headquarters in Washington, Director of Communications Julie Kozack confirmed that discussions regarding the combined fifth and sixth reviews of the $8 billion Extended Credit Facility (ECF) are well-advanced. Additionally, the first review of the $1.3 billion Resilience and Sustainability Facility (RSF) is nearing completion. If formally approved during the board meeting scheduled for February 25, Egypt will receive $2 billion under the ECF and roughly $300 million through the RSF.

The IMF highlighted several key drivers for this progress, including a recent cabinet reshuffle and the government’s strategic decision to dismantle the Ministry of Public Enterprises. This move is part of a broader effort to streamline the governance of public assets and improve economic efficiency.

To mitigate the impact of high inflation on the nation’s most vulnerable, the Egyptian government has also announced a massive social protection package. This includes over 40 billion Egyptian pounds (approx. €750 million) in cash transfers to low-income households timed for Ramadan and Eid al-Fitr. The IMF emphasized that these targeted measures, alongside accelerated rural development and healthcare expansion, are vital for maintaining social stability while the country undergoes rigorous structural adjustments.