Egypt and IMF agree to merge 1st and 2nd reviews, Reuters

According to Reuters, Egypt and the International Monetary Fund (IMF) have agreed to merge the fund’s postponed first and second reviews of Egypt’s $3 billion loan, citing local media.

Citing an official statement, Reuters reported that both the IMF and Egypt agreed to merge the reviews and expect a scheduled date before the end of 2023.

Multiple news outlets reported the delay last week, citing different sources.

The first review was initially scheduled for March 2023, with a second scheduled for some time this month. The IMF has postponed the reviews due to concerns about Egypt’s progress in meeting the key conditions of the Extended Fund Facility (EEF) loan.

The first payment of the EEF loan, worth $347 million, was disbursed to Egypt in December 2022. The 46-month loan program’s $3 billion was scheduled to be disbursed in 8 installments after bi-annual reviews.

As part of the loan agreement, Egypt has implemented a fully flexible exchange rate, worked on improving the private sector’s role in the economy, and accelerated its IPO program and privatization reforms. Egypt has been accelerating efforts to meet these commitments.

Since March 2022, soon after the start of the Russia/Ukraine war, the Egyptian pound’s exchange rate against the USD has deteriorated. The LE fell from EGP 15.7 to the USD to LE 18.56 in March 2022, and now stands at around the LE 30 mark since March 2023.