– Egypt is set to access approximately $820 million pending approval from the IMF Board, following a staff-level agreement on the third review of an expanded IMF loan program.

– The agreement comes after an IMF mission to Cairo from May 12-26, reviewing Egypt’s reform performance under an Extended Fund Facility loan, which was increased to $8 billion in March from the original $3 billion agreed in December 2022.

– Despite regional challenges, including spillovers from the Gaza conflict and Red Sea shipping disruptions, Egypt is making progress in restoring macroeconomic stability through fiscal discipline, tight monetary policy, and a flexible exchange rate regime, according to the IMF.

Egypt will have access to approximately $820 million pending IMF Board approval, according to the IMF.

The International Monetary Fund (IMF) announced it reached a staff-level agreement with Egypt on the third review of an expanded IMF loan program, which would release about $820 million to Cairo upon board approval.

This agreement follows an IMF mission to Cairo from May 12-26 to review Egypt’s reform progress under an Extended Fund Facility loan. Initially set at $3 billion in December 2022, the loan was expanded to $8 billion in March, Reuters reported.

The IMF stated that Egypt is making progress in restoring macroeconomic stability despite a challenging regional environment, including spillovers from the Gaza conflict and Red Sea shipping disruptions affecting Suez Canal revenues.

“While geopolitical tensions and their impact on Egypt remain challenging, the authorities have stayed the course to preserve macroeconomic stability through fiscal discipline, tight monetary policy, and a shift to a flexible exchange rate regime,” said Vladkova Hollar, IMF Egypt mission chief.

“These efforts are beginning to deliver an improved outlook, better FX availability, slowing inflation, and signs of recovery in private sector sentiment.”

Hollar emphasized the need for Egypt to maintain prudent fiscal policies, continue state enterprise divestment, and sustain tight monetary policy to control inflation. The IMF’s Executive Board is expected to consider the staff agreement and disbursement in the coming weeks.