Egypt’s USD 8 billion (EGP 392.48 billion) loan agreement with the International Monetary Fund (IMF) remains at the center of the country’s efforts to steady its economy and secure foreign funding. With only USD 3.5 billion (EGP 171.71 billion) disbursed so far, Cairo now faces pressure to deliver on long-promised reforms by the fall to secure the remaining balance. The IMF, in its most recent review, approved a USD 1.2 billion (EGP 58.87 billion) disbursement in March 2025 to help buttress foreign reserves and support economic reforms after completing its fourth review of the Extended Fund Facility (EFF), originally inked in December 2022. The program, first designed as a USD 3 billion (EGP 147.18 billion) facility, was expanded to USD 8 billion (EGP 392.48 billion) in March 2024 to stabilize Egypt’s economy, which had been battered by soaring inflation, currency devaluation, and external shocks from the war in Gaza and a decrease in Suez Canal’s revenue. While the IMF praised Cairo’s macroeconomic stabilization efforts, including an easing inflation rate and a rebuilding of foreign reserves, it issued a stern warning in its July 2025 staff report, stating that structural reforms…
Egypt Faces Pressure to Deliver Reforms as IMF Loan Progress Stalls
August 4, 2025
