IMF Shows Greater Flexibility as Confidence in State Stability Grows, Says Madbouly

Prime Minister Mostafa Madbouly said the International Monetary Fund (IMF) consistently places strong emphasis on a country’s stability, noting that greater confidence in political and economic stability often translates into increased flexibility in discussions over reform programs.

Speaking during a high-level economic forum in Beirut titled “Prospects for Economic and Trade Cooperation Between Egypt and Lebanon,” Madbouly explained that as program implementation progresses, the IMF gains reassurance about the government’s capacity to deliver on its commitments. This, he said, opens the door to constructive dialogue over targets and timelines within the agreed framework.

Madbouly made the remarks while responding to questions from participants, including officials from Lebanese economic authorities and representatives of the Chamber of Commerce and Industry. He was asked about Egypt’s cooperation with the IMF, the strength of its negotiating position, and how Lebanon might draw lessons from Egypt’s experience in managing its reform program.

The prime minister stressed that economic reform programs cannot be treated as rigid frameworks, particularly in a region vulnerable to sudden geopolitical shocks. He pointed to the war in Gaza as a major external development that has had significant repercussions across the region, alongside the sharp decline in Suez Canal revenues, which has placed additional pressure on Egypt’s economy.

“These developments make it necessary to return to the negotiating table with the IMF,” Madbouly said, adding that Egypt has remained firm in presenting its position clearly and decisively. The objective, he explained, is to recalibrate targets where needed, ensuring the program remains dynamic and responsive to unfolding realities rather than fixed and inflexible.

Madbouly’s remarks underline Cairo’s approach to economic reform as a continuous process shaped by both domestic performance and external shocks, an approach he suggested could offer valuable insights for countries such as Lebanon as they navigate their own economic challenges.