IMF Approves $1.2 Billion Loan Tranche to Egypt, Urges Reform
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Editor - . March 12, 2025
- . Update: March 12, 2025 1:03 pm
The IMF provided Egypt with $1.2 billion under its fourth disbursement cycle of an $8 billion extended fund facility program. It now has received almost $3.2 billion from this agreement. After releasing money the IMF stated that successful economic growth in Egypt depends on faster execution of important reforms.
Under the signed 46-month EFF agreement from 2022, Cairo needs to put public asset sales into motion to help its struggling economy and build foreign cash reserves. According to IMF requirements, Egypt needs to improve tax collection standards and business procedures while selling government assets faster with more transparent management systems.
The economic problems in Egypt hurt as Suez Canal earnings generated most foreign money but they shrank by 60 percent when traffic on the Red Sea stopped in 2024. During the first quarter of fiscal 2024/25, Egypt’s economy grew by 3.5 percent but their current account shortfall expanded to 5.4 percent of their total output. Under a resilience and sustainability facility, Egypt received $1.3 billion from IMF approval and can now modify its future fiscal plan ahead of its July 1 fiscal year start.
