Madbouly announced that the IMF would begin its review of Egypt’s loan program on Tuesday, a process that could potentially unlock more than $1.2 billion in financing
Egyptian Prime Minister Mostafa Madbouly underscored the strength of Egypt’s partnership with the International Monetary Fund (IMF) and recognized the IMF’s continued support for the nation’s economic reform initiatives during a joint press conference with IMF Managing Director Kristalina Georgieva in Cairo.
Madbouly announced that the IMF would begin its review of Egypt’s loan program on Tuesday, a process that could potentially unlock more than $1.2 billion in financing. This review marks the fourth in Egypt’s 46-month IMF loan program, initially approved in 2022 and expanded to $8 billion this year. The IMF team is set to collaborate with the Central Bank of Egypt and relevant ministries, providing critical momentum for Egypt’s efforts toward macroeconomic stability and structural reforms aimed at long-term growth.
Georgieva acknowledged the resilience shown by Egypt’s government and people amid challenging regional economic conditions and affirmed the IMF’s commitment to supporting Egypt’s path toward stability and development. She highlighted Egypt’s progress in implementing a flexible exchange rate system, a key step that IMF leadership views as essential for economic resilience. The decision to expand the program from $3 billion to $8 billion earlier this year reflects the IMF’s recognition of Egypt’s proactive measures and the broader complexities of the global economic environment.
Georgieva noted Egypt’s strides in bolstering the private sector, positioning it as essential for job creation and economic growth, particularly for the country’s young workforce. Egypt has also advanced its social protection framework by gradually reducing subsidies and channeling financial support to its most vulnerable populations. The IMF forecasts Egypt’s economic growth rate to rise to 4.2% in the 2024-2025 fiscal year, up from 2.4% last year, as inflation is expected to ease to approximately 25-26% from last year’s high of 37%. The IMF anticipates continued progress on inflation reduction, offering relief to low- and middle-income families.
Georgieva outlined three strategic priorities for Egypt: maintaining macroeconomic stability, fostering private sector expansion to meet annual job creation demands, and advancing Egypt’s green economy objectives. These priorities will shape upcoming discussions, with the IMF committed to supporting Egypt’s focused efforts in these areas. In today’s rapidly shifting global landscape, Georgieva highlighted the need for adaptability and proactive measures to capture emerging opportunities.
Madbouly closed the conference by reaffirming Egypt’s commitment to a productive, long-term partnership with the IMF, emphasizing the necessity of resilience and quick adaptation as governments globally navigate an increasingly volatile economic environment.
