The key facts
- An IMF mission is holding talks in Egypt this week on a staff-level agreement; the draft is to go to the executive board by mid-December
- The final disbursement under the program is estimated at about $2.3 billion; after the July tranche of about $1.8 billion, the total under the two facilities reached $7.3 billion
- The 46-month EFF program, launched in December 2022, has been extended to December 15, 2026
IMF sets deadline for Egypt's final program review
The International Monetary Fund said that this week an IMF mission is in Egypt for talks on reaching a staff-level agreement on the country's economic program. The draft agreement is to be submitted to the IMF's executive board for approval by mid-December, The National reported , citing the fund's communications director, Julie Kozack. The final disbursement under the program will amount to about $2.3 billion, she said.
Program context and measures under discussion
Egypt concluded a 46-month Extended Fund Facility (EFF) with the fund in December 2022; its term was due to expire in October but has been extended to December 15, 2026. In 2025 the country also began operating under the Resilience and Sustainability Facility (RSF). In July the fund completed the seventh review of the EFF and the second under the RSF, which allowed the release of about $1.8 billion; after that, total purchases and disbursements under the two facilities reached roughly $7.3 billion.
What the talks are about
According to Kozack, this week's discussions focus on maintaining tight monetary policy and a fiscal consolidation plan, with the overall goal of preserving Egypt's macroeconomic stability. Structural reforms aimed at reducing the state's presence in the economy remain a central theme: priorities named include accelerating the privatization program, implementing the state ownership policy, leveling the playing field between state-owned and private companies, and improving the business climate. “The aim of these reforms is to support stronger growth in Egypt led by the private sector,” The National quoted her as saying.
The fund's forecasts
The fund has previously cited Egypt as a positive example of reform implementation, noting that strong macroeconomic buffers, a flexible exchange rate and a swift policy response helped the country absorb the fallout from the war involving Iran. According to the October World Economic Outlook, the IMF expects Egypt's economy to grow from 4.4% last year to 5.1% this year, slowing to 4.7% in 2027. Inflation, the forecast says, will fall from 12.1% in 2025 to 9.4% in 2026, then rise to 11% the following year.
