Egypt Receives Third Tranche from IMF worth $820 Million

The Egyptian government announced on Thursday that it has received the third tranche, worth $820 million, of the reform program that Egypt is implementing with the International Monetary Fund (IMF).

The government said in the statement that receiving the third tranche represents a certificate of confidence in the Egyptian government's program, including its reforms and financial and economic targets, and an important step towards helping to achieve the Egyptian government's vision in this regard.

Egyptian PM Mostafa Madbouly reiterated that the approval of the Board of Directors of the International Monetary Fund for the third review within the framework of the Egyptian economic reform program stems from the confidence of the Board of Directors of the Fund in the Egyptian government's program.

Last Monday, the International Monetary Fund announced the completion of a review that allows Egypt to withdraw $820 million, saying that efforts to restore macroeconomic stability were beginning to bear fruit, but urged further progress in curbing the control of state-owned companies.

This is the third review under the latest 46-month loan program from the fund for Egypt, which was approved in 2022 and was increased to $8 billion this year.

Egypt says it has moved to a flexible exchange rate regime, a policy that the IMF said on Monday remains "the basis of the program adopted by its authorities."

The IMF statement said, "Inflationary pressures are gradually receding, the foreign exchange deficit has been eliminated, and fiscal targets (including those related to spending through large infrastructure projects) have been achieved."

Meantime, the Egyptian pound continued its decline against the US dollar for the second day in a row. The dollar recorded EGP 48.62 to buy and EGP 48.75 to sell at the Central Bank of Egypt (CBE).