IMF Aims for December Deal on Egypt's Economic Program Review

The International Monetary Fund (IMF) announced on Thursday that a mission is currently in Egypt for discussions aimed at securing a staff-level agreement on the nation's economic program. This agreement is slated for presentation to the IMF's executive board for approval by mid-December.

Egypt entered into a 46-month Extended Fund Facility (EFF) program with the IMF in December 2022. Originally set to expire in October, the program's deadline has been extended to December 15, 2026. Additionally, Egypt initiated its Resilience and Sustainability Framework (RSF) with the fund in 2025.

IMF Communications Director Julie Kozack stated that the primary objective of the current visit is to finalize a staff-level agreement for the executive board's approval before the EFF concludes. "We have a mission in the field right now discussing the reviews, the programme," she informed a news conference. Kozack confirmed that the final disbursement would amount to approximately $2.3 billion.

In July, the fund successfully completed the seventh review of Egypt's EFF and the second review of its RSF program, which resulted in the release of roughly $1.8 billion in funding at that time. This brought the total purchases and disbursements under both arrangements to about $7.3 billion.

Kozack elaborated that the discussions this week are concentrating on maintaining a stringent monetary policy and a fiscal consolidation plan, with the overarching goal of preserving Egypt's macroeconomic stability. She also noted that, in addition to macroeconomic measures, structural reforms will remain a key focus, intended to reduce the state's economic footprint. "The goal of these reforms is to support stronger, more private sector-led growth in Egypt," Kozack added.

Key priorities highlighted by Kozack include accelerating Egypt's divestment program, implementing its state ownership policy, ensuring a level playing field between public and private sector companies, and enhancing the business climate. The IMF has previously cited Egypt as a positive example of reform implementation.

The IMF indicated that Egypt's robust macroeconomic buffers, flexible exchange rate, and prompt policy responses have enabled it to mitigate the impacts of the Iran war. The IMF projects Egypt's economy to grow from 4.4 percent last year to 5.1 percent this year, before moderating to 4.7 percent in 2027, according to its latest World Economic Outlook. Consumer prices are forecasted to decrease from 12.1 percent in 2025 to 9.4 percent in 2026, with a subsequent rise to 11 percent next year.