By: ThinkBusiness Africa
The International Monetary Fund (IMF) and the Egyptian government have reached a staff-level agreement on the combined fifth and sixth reviews of Egypt’s economic reform program. The agreement paves the way for the release of approximately $2.5 billion in funding, signaling international confidence in the country’s stabilizing economy. IMF said in a statement on Monday.
Approximately $1.2 billion will be disbursed from the Extended Fund Facility (EFF) following the successful completion of the fifth and sixth reviews.
An additional $1.3 billion is tied to the first review of the Resilience and Sustainability Facility (RSF) , this climate-focused program, aimed at helping Egypt transition to a greener economy and manage long-term fiscal risks.
The agreement still requires the final rubber stamp from the IMF Executive Board, to unlock the two loans.
IMF Mission Chief Vladkova Hollar noted that despite a “challenging regional security environment,” Egypt’s stabilization efforts have yielded robust results.
The North African nation entered into a 46-month loan agreement with the IMF in March 2024, when it was battling an economic crisis.
Since the loan arrangement Egypt has attained macro economic stability. Egypt’s GDP growth accelerated to 5.3% in the first quarter of the 2025/26 fiscal year, up from 2.4% in the previous year.
From a historic peak of 38% in late 2023, annual headline inflation plummeted to 12.3% by November 2025.
Foreign reserves have seen significant growth boosted by tourism, diaspora remittances, and massive investment deals (such as the $29.7 billion Alam El Roum project with Qatar), foreign currency reserves reached $56.9 billion.
While the IMF praised Egypt’s fiscal discipline and tax revenue growth (which surged by 35% in late 2025), it remained firm on the need for faster state divestment.
The government has committed to a “State Ownership Policy” that aims to exit non-strategic sectors. Several major state assets are slated for sale or listing on the Egyptian Exchange (EGX) through 2026.
The IMF emphasized that for Egypt to maintain this momentum, it must “level the playing field” between the private sector and state-owned enterprises (including those affiliated with the military). The authorities have reiterated their commitment to a flexible exchange rate and widening the tax base to ensure debt remains on a downward path.
“With the macroeconomic stabilization now underway, it is critical for Egypt to transition toward a more sustainable economic model through the acceleration of reforms that would provide the private sector the space and the opportunity to flourish.” IMF Mission Chief Vladkova Hollar said in a statement.
The Executive Board is expected to meet in early 2026 to formally approve the disbursement, which is critical as Egypt faces an estimated $44 billion in debt servicing over the 2025–2026 period.
