RIYADH: Egypt reached a staff-level agreement with the International Monetary Fund that could unlock another $1.64 billion in funding, taking total program disbursements to about $7.2 billion.
The agreement covers the seventh review under the Extended Fund Facility and the second review under the Resilience and Sustainability Facility. Once approved by the IMF Executive Board, Egypt will receive approximately $1.5 billion under the EFF and an additional $136 million under the RSF, according to an IMF statement.
The agreement comes as Egypt continues implementing an IMF-backed reform program focused on restoring macroeconomic stability, strengthening public finances, and expanding private sector participation.
Earlier in June, Prime Minister Mostafa Madbouly said the government does not expect to need a new IMF financing program after the current arrangement expires in December, adding that discussions with the fund were progressing well despite the impact of regional geopolitical tensions.
In its latest release, the IMF said: “The impact of the war in the Middle East on the Egyptian economy has remained relatively contained, supported by the authorities’ timely and decisive policy actions, including fuel and electricity price adjustments, as well as rationalizing energy consumption by government entities and reprioritizing spending to alleviate external and fiscal pressures, together with increasing social spending to mitigate the impact on the vulnerable.”
