IMF confirms 4th review to be finalized soon, potential $1.2B tranche to be released

Cairo – February 9, 2025: Julie Kozack, IMF Communications Director, confirmed on Thursday that the International Monetary Fund (IMF) is preparing to present the fourth review of Egypt’s current loan program to its Executive Board. This review could unlock an additional $1.2 billion in financial support.

In addition, Kozack mentioned that the IMF plans to propose a potential Resilience and Sustainability Facility (RSF) alongside the review.

The RSF is designed to help countries address long-term challenges like climate change, and Kozack confirmed that it will be considered by the IMF's Executive Board alongside the fourth review of Egypt’s loan program.   

“A policy package of reforms will be considered by the Fund's executive board, along with the fourth review of Egypt's program,” Kozack explained while discussing the RSF.

While Kozack could not confirm the exact size of the RSF loan, previous estimates range at up to an additional $1 billion for Egypt.

As part of the fourth review, the IMF and Egyptian authorities reached a staff-level agreement in December to adjust the country’s fiscal policies.

“In light of the difficult external conditions and challenging domestic environment, the IMF staff and the Egyptian authorities agreed to recalibrate the fiscal consolidation path, and this was agreed in December, I would highlight, to create fiscal space for critical social programs benefiting vulnerable groups and the middle class while ensuring debt sustainability,” she added.

“Looking forward, reform priorities comprise lowering inflation, sustaining exchange rate flexibility, and liberalized access to foreign exchange,” Kozack explained, noting that it will focus on include improving the business environment and enhancing governance and transparency.

The IMF's Executive Board is expected to consider both the fourth review of Egypt’s loan program and the discussions around the RSF in the coming weeks.