Prime Minister Mostafa Madbouly welcomed the International Monetary Fund's (IMF) Executive Board approval of the seventh review under Egypt's Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF), saying the decision underscores international confidence in the country's economic reform program.
The approval enables Egypt to immediately access SDR 1.31 billion (about $1.77 billion), including SDR 1.11 billion (around $1.5 billion) under the EFF and SDR 200 million (about $272 million) under the RSF. Total disbursements under both programs have now reached approximately SDR 5.4 billion, equivalent to around $7.3 billion.
Madbouly said the significance of the IMF's decision extends beyond the financing itself, pointing to the Fund's assessment that Egypt entered the recent Middle East conflict from a stronger macroeconomic position than during previous external shocks, supported by reforms that enhanced the economy's resilience.
He noted that the IMF praised the government's swift policy response, including exchange rate flexibility, energy price reforms, and fiscal consolidation measures, which helped contain the economic impact of regional tensions while preserving macroeconomic stability.
The prime minister highlighted the Fund's assessment that Egypt's economic recovery remains on track, with real GDP growth reaching 5% in the third quarter of FY2025/26 and averaging 5.2% during the first nine months of the fiscal year. The IMF expects the economy to expand by about 4.6% for the full fiscal year despite ongoing external challenges.
Madbouly also pointed to the IMF's positive assessment of Egypt's external position, citing record remittance inflows, resilient tourism revenues, the gradual recovery of Suez Canal receipts, and energy hedging policies that helped cushion external pressures while keeping international reserves above 119% of the IMF's reserve adequacy metric.
On public finances, he said the Fund acknowledged stronger-than-targeted primary surplus and tax revenue performance, alongside continued progress in reducing financing needs, reflecting the government's efforts to strengthen fiscal sustainability.
Madbouly said the IMF's latest review validates Egypt's reform trajectory while reinforcing the need to accelerate structural reforms, particularly expanding the private sector's role, implementing the State Ownership Policy, advancing the government's privatization program, and improving the business climate to attract more domestic and foreign investment.
He added that the government remains committed to advancing its national economic reform agenda while maintaining a balance between macroeconomic stability and social protection to support sustainable, private sector-led growth.
