IMF Releases $2.3 Billion to Egypt Amid Economic Stabilisation Efforts

IMF approves $2.3 billion for Egypt after latest programme reviews, noting improved macroeconomic stability but slow progress on structural reforms.

The International Monetary Fund (IMF) has approved the disbursement of approximately $2.3 billion to Egypt following the successful completion of its latest programme reviews, providing fresh financial support as the country presses ahead with efforts to liberalise and stabilise its economy.
The funding comes as Egypt continues to navigate one of the most severe economic crises in its modern history. The country has faced soaring inflation, sharp currency depreciation, rising debt levels and mounting pressure on foreign exchange reserves in recent years, compounded by global economic shocks and regional instability. In response, Cairo entered into an expanded $8 billion agreement with the IMF in March 2024 under a nearly four-year Extended Fund Facility (EFF) arrangement. The programme was designed to support wide-ranging economic reforms aimed at restoring macroeconomic stability, strengthening public finances and creating space for stronger private sector participation.
As part of its broader engagement, the IMF also approved an additional $1.3 billion loan for Egypt in March last year. That financing was intended to help address structural vulnerabilities, support climate-related reforms and enhance economic resilience amid external shocks.
On Wednesday, the IMF confirmed that Egypt had completed the fifth and sixth reviews under the Extended Fund Facility programme, clearing the way for the release of around $2 billion. In addition, the country will be able to draw approximately $273 million under the Resilience and Sustainability Facility (RSF) after the successful completion of its first review under that framework. The RSF is designed to assist countries in addressing long-term structural challenges, including climate-related risks and economic resilience.
In its statement, the IMF noted that Egypt’s macroeconomic situation has shown measurable improvement amid sustained stabilisation efforts. It highlighted that tight monetary and fiscal policies — including higher interest rates and efforts to contain public spending — combined with greater exchange rate flexibility, have contributed to restoring macroeconomic stability. According to the Fund, these measures have helped ease inflationary pressures, rebuild foreign exchange buffers and strengthen the country’s external financial position.
The IMF also pointed to improved investor confidence following reforms aimed at allowing the Egyptian pound to move more freely in line with market forces. Exchange rate flexibility has been a key pillar of the programme, intended to eliminate foreign currency shortages and reduce distortions in the economy.
However, despite the progress on macroeconomic stabilisation, the IMF cautioned that structural reforms under the programme have advanced unevenly. It noted that efforts to reduce the state’s footprint in the economy — including plans to scale back the role of state-owned enterprises and create more opportunities for private sector investment — have proceeded more slowly than initially envisaged.
The Fund stressed the importance of accelerating reforms that enhance competition, improve governance and increase transparency, particularly in sectors where state entities play a dominant role. Strengthening social protection mechanisms to shield vulnerable households from the impact of high prices and fiscal adjustments was also underscored as a continuing priority.
Egyptian authorities have reiterated their commitment to the reform programme, arguing that sustained implementation will lay the foundation for stronger, more inclusive growth. The latest disbursement is expected to bolster Egypt’s foreign reserves, ease external financing pressures and provide additional support as the government continues its economic restructuring efforts.