IMF Program for Egypt: Fifth, Sixth Reviews May Be Merged

The International Monetary Fund (IMF) may merge its fifth and sixth reviews of Egypt’s $8 billion loan program, according to three informed sources. 

This potential move could delay the disbursement of the next loan tranche by as much as six months.

The IMF had approved the fourth review of the program in March 2025, which led to the release of $1.2 billion. A team from the Fund visited Egypt in May to begin the fifth review, but no official approval has been announced since then.

The $8 billion Extended Fund Facility was initially approved in March 2024 and spans 46 months.

 At the time, Egypt was facing a severe shortage of foreign currency and inflation had surged to a peak of 38% in September 2023. According to Reuters' estimates, Egypt has received around $3.5 billion under the arrangement so far.

One source noted that Egypt’s progress on structural reforms—which are a central component of the IMF program—has been slow. These reforms include reducing the state’s role in the economy through asset sales and privatization. Egypt reportedly failed to meet half of the structural benchmarks in the last two reviews. However, the source added that fiscal reforms, including taxation, have been proceeding relatively smoothly.

As of early July, Egypt has not been placed on the IMF Executive Board's agenda, which runs through July 11, according to the IMF’s official website. This absence from the schedule suggests that the review process may be delayed until at least late summer. The next possible opportunity for a board meeting may not come until December 2025 at the earliest.

The IMF has also not yet published the staff report from the fourth review. A source stated that the Egyptian government requested a delay in order to finalize and announce new tax measures aimed at broadening the country’s revenue base. On Sunday, Egypt’s Parliament passed an increase in the value-added tax (VAT), which will raise taxes on services such as construction, crude oil, cigarettes, and alcohol. This step may facilitate the release of the IMF's staff report in the near future.

The Egyptian Ministry of Finance and the Central Bank have not commented publicly on these developments.