Egypt's loan program review to be completed within weeks: IMF’s Managing Director

CAIRO – 27 February 2024:  The International Monetary Fund (IMF) resolved major issues with Egypt in its review of its $3 billion loan program, IMF’s Managing Director, Kristalina Georgieva, announced.

Georgieva added that an additional financing package would be finalized within weeks, but she didn’t disclose the size of the expected increase in the additional financing.

She noted in statements on the sidelines of a G20 finance meeting in Brazil that the engagement had been "very constructive" and there were "very encouraging signals" about Egypt's views on dealing with heritage issues that had affected its competitiveness.

in a recent press briefing, Julie Kozack, Communications Director of the International Monetary Fund (IMF), Julie Kozack, announced that the IMF staff and Egyptian officials are making significant strides in their discussions regarding a comprehensive policy package. The objective is to achieve a staff-level agreement for the combined first and second reviews under the reform program backed by the IMF.

Kozack emphasized that the IMF team and the Egyptian authorities have reached a consensus on the key components of the program, with the authorities demonstrating a strong commitment to its implementation.

With regards to the potential influx of refugees from Gaza to Egypt and the possible pressures on the Egyptian economy acknowledging the situation, Kozack stated, "We recognize the need for a comprehensive support package for Egypt, and we are working closely with both the Egyptian authorities and their partners to ensure that Egypt's financing requirements are fully met. Our goal is to establish a program that guarantees macroeconomic and financial stability in Egypt."

Earlier in February, Georgieva met with Egypt’s Prime Minster Mostafa Madbouly, on the sidelines of the World Government Summit in Dubai.

She wrote in a tweet via X platform that “Working with Egypt is a high priority for the International Monetary Fund (IMF),”

Georgieva added in her tweet, that they have made significant progress in our discussions of a comprehensive policy package needed to complete the first and second reviews of Egypt’s economic reform program.

The IMF had postponed the two reviews of Egypt's current program, agreed upon over a year ago, awaiting authorities to allow a more flexible exchange rate and fulfill other promises before receiving additional funds. Georgieva affirmed today that the discussion with Egypt is about a flexible exchange rate and not "floatation."

Reaching an agreement with the IMF and development partners would contribute to lifting Egypt out of its worst economic crisis in decades, especially with the urgent need for economic stability in the face of Israel's war on neighboring Gaza.