IMF Gives Egypt More Time for Reforms, May Delay Next Loan Payment
The International Monetary Fund (IMF) said on Thursday it will combine Egypt’s fifth and sixth loan reviews into one review later this year. This is to give Egypt more time to carry out important economic changes, especially reducing how much the government controls in the economy.
Loan Payment May Be Delayed
Talks are still ongoing about how much money Egypt will receive in the next payment. It is not yet clear if the next two payments will be combined.
Julie Kozack, an IMF spokesperson, said the exact amount of financing will be decided during current discussions. She did not give more details.
This combined review will also include the first check of Egypt’s Resilience and Sustainability Facility (RSF), which is being reviewed at the same time as the sixth loan review.
The IMF believes Egypt needs more time to make progress on key reforms, such as selling government-owned businesses and reducing government control in certain industries.
The IMF says that reducing the state’s role and strengthening private businesses are important for Egypt’s long-term growth. The IMF continues to support Egypt’s efforts to reform its economy.
Possible Six-Month Delay
Because the reviews are being combined, Egypt’s next payment from the IMF might be delayed by up to six months. In March, Egypt passed its fourth review and received $1.2 billion, bringing the total received so far to about $3.5 billion.
Kozack said the IMF’s visit to Cairo in May was helpful and Egypt has made progress, but more work is needed to improve the business environment and reduce government interference in the economy.
Economic Growth Outlook
Egypt signed a 46-month IMF program in March 2024 after facing over a year of high inflation and foreign currency shortages. Inflation peaked at 38% in September 2023.
Finance Minister Ahmed Kouchouk said in April that Egypt’s economy is expected to grow 4.5% in the next year, up from 4% in 2024–2025. The country’s total economic output is expected to grow from $336.4 billion to $399 billion.
The new government budget increases spending by 19.2% to $88.9 billion, and expects revenue to rise 23% to $60.6 billion. The government hopes to collect $50.9 billion in taxes through better enforcement and new measures, but without raising tax rates.
Published: 5th July 2025
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