IMF allegedly to delay upcoming loan review again, might mean EGP devaluation

The International Monetary Fund (IMF) will allegedly delay the highly-anticipated first review of its $3 billion loan to Egypt once more, pushing it to an unknown date, according to an unnamed government official cited by Asharq Business.

This is not the first time the IMF has delayed the review, which was originally slated for March 15, 2023. The source added that, while a new date hasn’t been scheduled, the review will be taking place sometime this year.

The source stated that the delay could indicate another devaluation of the EGP before the end of 2023.

The first payment of the Extended Fund Facility (EFF) ($347 million) was received by Egypt from the IMF in December, and the remaining payments were scheduled for March and September of each year from 2023 to 2026. However, due to subsequent delays to the review, Egypt has not received the March disbursement.

Disbursements under the 46-month program are subject to eight reviews.

During her first visit to Egypt in June, Antoinette Monsio Sayeh, deputy managing director of the IMF, spoke to local media about the March delay. Sayeh explained that, while the IMF was encouraged with its discussion with Egyptian officials, the government would need to continue its efforts on the economic reform program which were already on a positive trajectory. She added that the IMF’s priority is the implementation of the reforms which will help catalyze these investments to Egypt.