The Executive Board of the International Monetary Fund (IMF) approved the immediate disbursement of approximately $2.3 billion to Egypt after completing the fifth and sixth reviews under the country’s Extended Fund Facility (EFF) arrangement, as well as the first review under the Resilience and Sustainability Facility (RSF).
The approval unlocks the funds for Cairo at a critical juncture as authorities press ahead with economic reforms aimed at stabilizing the macroeconomic environment and restoring investor confidence.
In a statement released Thursday, the IMF cited improving macroeconomic conditions, supported by tight monetary and fiscal policies and greater exchange rate flexibility. These measures, the Fund said, have helped restore stability, reduce inflationary pressures, and strengthen Egypt’s external position.
Egypt’s economy expanded by 4.4% in real terms during fiscal year 2024/25. Inflation eased to 11.9% in January 2026, reflecting the impact of policy tightening and base effects.
Meanwhile, the current account deficit narrowed to 4.2% of GDP, buoyed by stronger remittance inflows, higher tourism revenues, and renewed market confidence, as evidenced by increased foreign investment flows and international bond issuances.
Despite the positive momentum, the IMF noted that implementation of structural reforms has been uneven. Progress in reducing the state’s footprint in the economy, particularly through privatization efforts, has been slower than anticipated, limiting fiscal space and weighing on medium-term growth prospects.
Under the RSF framework, Egypt has advanced climate-related reforms tied to its transition toward a greener economy. These steps include publishing a timetable for renewable energy targets and issuing directives requiring banks to monitor climate-related financial risks.
The IMF emphasized that Egypt’s central priority remains shifting toward a sustainable, private sector-led growth model. Key policy objectives include enhancing competitiveness, facilitating private sector participation, scaling back the state’s economic role, maintaining exchange rate flexibility, continuing disinflation efforts, strengthening domestic revenue mobilization, and implementing a comprehensive debt management strategy.
The Fund also underscored the need to safeguard social spending and protect vulnerable groups, while improving governance standards in state-owned enterprises and banks. Continued progress on climate reforms will be essential to ensuring inclusive and sustainable long-term growth, the IMF added.
Illustration featuring the International Monetary Fund (IMF) logo alongside the Egyptian flag. — Taarek Refaat / See News
Illustration featuring the International Monetary Fund (IMF) logo alongside the Egyptian flag. — Taarek Refaat / See News
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