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Prime Minister Mostafa Madbouly stated on Sunday that the International Monetary Fund (IMF) is set to start its delayed fourth review of Egypt’s 46-month loan program this week, a key evaluation aimed at ensuring compliance with the economic targets tied to the multibillion-dollar agreement.
Originally planned for the end of September, this review is part of an expanded agreement Cairo signed with the IMF in April. The agreement increased the original loan from $3 billion to $8 billion, aimed at strengthening Egypt’s ability to address ongoing economic difficulties.
Once finalized, the fourth review is expected to unlock an additional $1.2 billion in financing, providing Egypt with essential resources to address its financial needs.
Georgieva praised “the commitment and the strength of the actions Egypt has already taken”.
Prime Minister Mostafa Madbouly, at a Cairo news conference with IMF Managing Director Kristalina Georgieva, confirmed that the IMF team would commence the review on Tuesday, engaging with Egypt’s central bank and relevant ministries to assess the economic reform milestones.
Acknowledging the difficulties Egypt’s economy is enduring, the IMF chief pointed to the added strain from regional conflicts, which have intensified the country’s financial challenges.
She said “conditions have become more difficult for no fault of your own, but because of the conflict in your neighbourhood”.
Earlier on Sunday, Georgieva met President Abdel Fattah al-Sisi.
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A statement from the presidency quoted Sisi as saying Egypt “would prioritise easing the burden of inflation on citizens”, focusing on curbing rising prices, attracting investments and empowering the private sector.
The government raised fuel prices last month by up to 17 percent after inflation hit 26.4 percent in September.
Last month, Sisi said his government might reconsider the loan programme if it creates “unsustainable public pressure”.
He cited challenges from ongoing regional instability, particularly the prolonged conflict in the Gaza Strip.
Despite the rising cost of living, Georgieva said Sunday Egyptians “will see the benefits of these reforms in a more dynamic, more prosperous Egyptian economy”.
She said she expected inflation to slide to 16-17 percent by the end of this fiscal year (to June 2025) after peaking at 37 percent.
Jihad Azour, the IMF’s Middle East and Central Asia director, last week also acknowledged challenges faced by Egypt’s economy.
