The International Monetary Fund (IMF) and Egyptian authorities have reached a staff-level agreement on the seventh review under Egypt’s Extended Fund Facility (EFF) programme and the second review under the Resilience and Sustainability Facility (RSF), the fund announced.
Subject to approval by the IMF Executive Board, the completion of the reviews would unlock total financing of around $1.6 billion, including $1.5 billion under the EFF arrangement and $136 million under the RSF facility.
The latest disbursements would bring Egypt’s total financing received under the two programmes to around $7.2 billion, according to the IMF.
The IMF mission, led by Mr. Mati, held discussions with Egyptian authorities in Cairo from May 11–21, 2026, followed by virtual meetings, focusing on economic and financial policies supporting the completion of the reviews.
The fund said the impact of regional tensions on Egypt’s economy has remained relatively contained, supported by government measures including fuel and electricity price adjustments, rationalisation of energy consumption, spending reprioritisation, and increased social protection measures.
Egypt’s real GDP growth reached 5% in the third quarter, bringing growth during the first three quarters of the fiscal year to 5.2%, according to the IMF.
The fund noted that foreign reserves remained broadly stable by the end of March 2026, while the recent return of portfolio inflows supported the recovery of the exchange rate following depreciation pressures linked to regional developments.
On fiscal performance, the IMF said Egypt exceeded both its primary balance and tax revenue targets by the end of March 2026.
The primary surplus is projected to rise from 4.8% of GDP in FY2025/26 to 5% of GDP in FY2026/27, supporting efforts to place public debt on a downward path.
The IMF also highlighted improvements in domestic revenue mobilisation, with the tax-to-GDP ratio expected to increase by 1.2 percentage points this fiscal year.
However, the fund warned that risks remain, including renewed global inflation pressures, regional tensions, and tighter financial conditions.
Headline urban inflation reached 14.6% in May and is projected to rise to 15.8% by the end of the fiscal year, reflecting higher energy prices and exchange rate effects.
The IMF stressed the importance of maintaining exchange rate flexibility, strengthening debt management, and accelerating structural reforms to support private sector-led growth.
It also highlighted the need to advance implementation of Egypt’s State Ownership Policy, saying reforms aimed at improving the business environment and increasing private sector participation would support investment and job creation.