IMF prepares for first review of Egypt loan programme

The International Monetary Fund (IMF) is preparing for the first review of Egypt’s economic reform programme as dates for the review mission will be announced when agreed with the authorities, IMF spokesman said on Thurdsay.

“Preparations for the first review have started and dates for the first review mission will be announced when they have been agreed with the authorities,” Julie Kozack, IMF spokeswoman, said in a press briefing.

The Washington-based lender had earlier said in a January 10 report that the first review “is expected to be completed in March.”

The IMF approved in December a $3 billion Extended Fund Facility loan for Egypt as the impact of Russia’s war in Ukraine has hit its economy particularly hard, triggering major food and fuel-price hikes and cutting off sources of vital tourism revenues.

The disbursements under the 46-month programme are subject to eight reviews, the first of which was dated March 15, 2023 in an IMF staff report published in December.

Among the key commitments that Egypt made to secure the IMF loan were a permanent shift to a flexible exchange rate regime and wide-ranging structural reforms to reduce the state’s footprint in the economy.

Authorities have already devalued the Egyptian pound three times throughout 2022 and intend to shift to a more flexible exchange rate, moves that helped secure the IMF loan. Last month, Egyptian government also revived a plan to sell stakes in a number of state-run companies to raise cash.