The International Monetary Fund (IMF) is set to approve a new loan package for Egypt as part of its Resilience and Sustainability Facility (RSF), IMF Communications Director Julie Kozack confirmed in a press briefing on Thursday 6 February.
The new loan will be presented alongside the fourth review of Egypt’s USD 8 billion (EGP 402.4 billion) Extended Fund Facility (EFF), which, if approved by the IMF’s Executive Board, will unlock USD 1.2 billion (EGP 60.37 billion) in funding.
While Kozack did not confirm the exact size of the new RSF loan, she acknowledged ongoing discussions on the facility and its associated funding.
“The intention is to present the RSF with its package of reforms to our Executive Board at the same time as we present the Fourth Review of the EFF,” Kozack stated.
The RSF is designed to support climate resilience and economic stability, complementing Egypt’s existing IMF program.
Kozack added that the new loan package would be tied to a policy reform agenda focused on “lowering inflation, sustaining exchange rate flexibility, improving the business environment, accelerating disinvestment… and enhancing governance and transparency.”
Additionally, the IMF and Egypt agreed to adjust financial plans to free up funds for social programs targeting vulnerable groups and the middle class while maintaining manageable debt levels.
In December 2024, the IMF and Egypt reached a staff-level agreement on the fourth review of the Extended Fund Facility, which is awaiting approval by the IMF’s Executive Board.
This follows the IMF’s March 2024 decision to increase Egypt’s loan program by USD 5 billion (EGP 251.52 billion), bringing the total to USD 8 billion (EGP 402.4 billion) to bolster economic stability.
Egypt has been under an IMF program since 2016, securing multiple loan agreements to support economic reforms. The new RSF loan is expected to provide additional financial support to help Egypt sustain its reform efforts and navigate economic challenges.
Comments (0)