Egypt looks to extend timeline to implement IMF-backed reforms

Cairo – October 22, 2024: The Egyptian government has reportedly sought an extension from the International Monetary Fund (IMF) regarding the timeline for implementing economic reforms tied to its loan program, according to an anonymous government official talking to CNN Business Arabic.

The source indicated that while all planned reforms will proceed, Egypt has requested to extend its implementation to a longer period than initially agreed.

The news comes within days of President Abdel Fattah El Sisi urging the government to reassess its agreement with IMF, stating, “If this challenge forces me to place unbearable pressure on the public, we must review the situation with the IMF.”

In March, the IMF agreed to expand its loan package to $8 billion, after successfully completing the third review of its economic reform program.

Economist James Swanston from Capital Economics noted that the reforms Egypt aims to delay primarily involve subsidy reductions, which have raised household expenses and contributed to inflationary pressures.

In line with the reforms, Egypt has raised fuel prices three times this year and increased bread prices for the first time in three decades.