The International Monetary Fund (IMF) has commenced its fifth review of Egypt’s $8 billion economic reform program. An IMF team arrived in Cairo this week and is scheduled to remain until May 16, according to a statement released on Monday.
This review follows the IMF Executive Board’s approval of the fourth review on March 11, which unlocked a disbursement of $1.2 billion under the 46-month loan program initially approved in 2022 and later expanded following the outbreak of conflict in Gaza.
In addition to the disbursement, the IMF approved an extra $1.3 billion in financing under its Resilience and Sustainability Facility (RSF).
Egypt has been grappling with a severe shortage of foreign currency and high inflation, which peaked at 38% in September 2023. The IMF has yet to publish a staff report from the fourth review, stating that Egyptian authorities needed more time to consider its publication.
The IMF board adjusted its primary budget surplus target during the fourth review. The surplus is expected to reach 4% beginning July 1, which is 0.5% less.
The IMF’s ongoing assessments aim to monitor Egypt’s adherence to the reform program’s objectives, which include fiscal consolidation, structural reforms, and measures to address economic vulnerabilities.
