The International Monetary Fund (IMF) has unlocked around $2.3 billion for Egypt after its latest program reviews, it said on Wednesday.
Egypt secured an expanded $8 billion package over nearly four years from the IMF in March 2024, contingent on a series of economic reforms.
In March last year, the global lender approved a new loan worth $1.3 billion for Egypt.
After completing the fifth and sixth reviews of the Extended Fund Facility, the IMF said on Wednesday around $2 billion will be unlocked for Egypt.
It will be able to draw an extra $273 million under the Resilience and Sustainability Facility (RSF) after the first review was completed, the IMF said in a statement.
"Egypt's macroeconomic situation has improved amid sustained stabilization efforts," it said. "A broad-based economic recovery has lifted real GDP growth to 4.4 percent in FY2024/25 while inflation declined markedly to 11.9 percent in January 2026, supported by tight monetary and fiscal policies."
"The current account deficit narrowed further to 4.2 percent of GDP, reflecting strong remittances and tourism receipts, while market confidence continued to improve, as evidenced by successful external issuances, foreign direct investment inflows, and record nonresident inflows into domestic debt markets."
"Tight monetary and fiscal policies together with exchange rate flexibility have helped restore macroeconomic stability, reduce inflation, and strengthen the external position."
But the IMF warned that structural reforms under the program have been "uneven.”
"Efforts to reduce the state's footprint, particularly progress on the divestment agenda, have been slower than envisaged, while high public debt and elevated gross financing needs continue to constrain fiscal space and weigh on medium-term growth prospects," the IMF added.
