The IMF will start the fifth review of Egypt’s $8 billion economic reform program. An IMF team will arrive in Cairo this week, according to a statement released on Monday.
The IMF board approved the fourth review on March 11. This unlocked a $1.2 billion disbursement from a 46-month IMF loan program that they initially approved in 2022. They later expanded the program after the outbreak of fighting in Gaza.
Egypt had been suffering from a severe shortage of foreign currency and inflation that peaked at 38% in September 2023.
The IMF has not yet published a staff report from the fourth review. They stated that “the Egyptian authorities needed more time to consider its publication.” A person familiar with the mission said the IMF team is expected to begin its visit on Tuesday. The team will remain in Cairo until May 16.
In March, the IMF board also approved an additional $1.3 billion in financing under its Resilience and Sustainability Fund.
During the fourth review, the IMF board approved Egypt’s request to waive its primary budget surplus target. The surplus was expected to reach 4% of GDP in the fiscal year that will begin on July 1, “0.5% less than Egypt had committed to earlier in the programme.”
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