IMF sets December target to clear Egypt's last programme review

The International Monetary Fund (IMF) dispatched a mission to Egypt this week to engage in discussions on the country's economic program, with the goal of reaching a staff-level agreement before a December deadline. This mission follows Egypt's participation in a 46-month Extended Fund Facility (EFF) program since December 2022, which was initially set to conclude in October but has been extended until December 15, 2026. The program was coupled with the Resilience and Sustainability Framework (RSF) in 2025.

IMF communications director Julie Kozack revealed that the visit aimed to facilitate a staff-level agreement that would secure approval from the IMF's executive board before the EFF expires. She disclosed that the disbursement of funds would amount to approximately $2.3 billion. In July, the IMF concluded its seventh review of Egypt's EFF and its second review of the RSF program, enabling authorities to access roughly $1.8 billion in funding. This brings the total purchases and disbursements under these arrangements to around $7.3 billion.

The IMF's discussions in Egypt this week centered on maintaining tight monetary policy and implementing a fiscal consolidation plan, with the overarching objective of preserving the nation's macroeconomic stability. Beyond these macroeconomic measures, structural reforms are expected to be a focal point of the discussions, aiming to foster stronger private sector-led growth in Egypt.

Kozack emphasized the priority of accelerating Egypt's divestment program, implementing state ownership policy, leveling the playing field between public and private sector companies, and enhancing the business climate. The IMF has frequently highlighted Egypt as a successful example of how nations can undertake necessary reforms.

Its strong macroeconomic buffers, flexible exchange rate, and swift policy response have reportedly aided Egypt in absorbing the impact of the Iran war. The IMF projects Egypt's economy to expand from 4.4% last year to 5.1% in 2025, before decelerating to 4.7% in 2027, according to its latest World Economic Outlook released this month.

Consumer prices are anticipated to decline from 12.1% in 2025 to 9.4% in 2026, before increasing to 11% next year.