The International Monetary Fund (IMF) Executive Board has completed the fifth and sixth reviews of Egypt’s Extended Fund Facility (EFF) programme, alongside the first review under the Resilience and Sustainability Facility (RSF), allowing Egypt to draw around USD 2.3 billion (EGP 110.3 billion), according to an IMF statement.
The approval enables Egypt to immediately access approximately USD 2 billion (EGP 95.9 billion) under the EFF and USD 273 million (EGP 13.1 billion) under the RSF, bringing the country’s total disbursements under both programmes to about USD 5.2 billion (EGP 249.3 billion).
The IMF said Egypt’s macroeconomic conditions have shown improvement following sustained stabilization measures, noting that tight monetary and fiscal policies, alongside exchange rate flexibility, have helped restore stability, reduce inflation, and strengthen the country’s external position.
Real gross domestic product (GDP) growth rose to 4.4 percent in fiscal year 2024/2025, a measure of how much the economy’s total production of goods and services increased after accounting for inflation, while inflation declined to 11.9 percent in January 2026.
The IMF also pointed to improvements in Egypt’s external accounts, with the current account deficit narrowing and foreign reserves increasing to around USD 59.2 billion (EGP 2.84 trillion) by December 2025, supported by stronger remittances, tourism revenues, and foreign inflows.
However, the IMF cautioned that progress on structural reforms remains uneven, particularly in efforts to reduce the state’s role in the economy and advance the government’s divestment agenda. High public debt and elevated financing needs continue to pose risks to medium-term growth prospects.
The RSF programme, which focuses on climate resilience and decarbonization reforms, has so far progressed as planned, with authorities completing key measures related to renewable energy targets and climate risk monitoring in the banking sector.
The latest approvals build on Egypt’s ongoing IMF-backed reform programme, which was initially agreed upon in December 2022 for USD 3 billion (EGP 143.9 billion) and later expanded. The 46-month arrangement has since been extended until December 2026, as Egypt continues to navigate economic pressures tied to inflation, debt, and regional instability.
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