The International Monetary Fund (IMF) announced plans to consolidate the fifth and sixth reviews of Egypt’s $8 billion support programme later this year.
This decision aims to provide Egyptian authorities with additional time to fulfil vital economic reform objectives.
IMF spokesperson Julie Kozack stated during a press briefing that IMF staff are collaborating with Egyptian authorities on key policy measures, focusing on the state’s economic role, Reuters reported.
This combined review approach, initially reported by Reuters, may delay Egypt’s next fund disbursement by up to six months. Discussions on the disbursement amount related to these reviews are still ongoing.
Earlier, in March, the IMF approved the program’s fourth review, releasing $1.2 billion and bringing the total to approximately $3.5 billion.
The 46-month financial programme was established in March 2024 after Egypt experienced significant foreign currency shortages and inflation peaking at 38% in September 2023.
Kozack highlighted productive discussions between the IMF and Egyptian officials in Cairo from May 6 to 18, noting progress in inflation control and foreign exchange reserve levels. However, she emphasised the need for Egypt to deepen reforms, reduce state economic involvement, and enhance the business environment for sustained macroeconomic stability.
Key priorities include advancing state ownership policies and asset diversification where the state plans withdrawal, crucial for empowering the private sector for sustainable growth.
Further staff discussions indicate a need for more time to finalise these policy measures, particularly concerning the state’s economic role.
