Prime Highlights
- Egypt has reached a staff-level agreement with the IMF that could unlock an additional $1.64 billion, raising total program funding to about $7.2 billion.
- Egypt’s real GDP growth reached 5% in the third quarter, with fiscal performance surpassing primary balance and tax revenue targets.
Key Facts
- The agreement covers the seventh review under the Extended Fund Facility and the second review under the Resilience and Sustainability Facility.
- Once approved, Egypt will receive about $1.5 billion under the EFF and $136 million under the RSF.
Background
Egypt has reached a staff-level agreement with the International Monetary Fund that could unlock an additional $1.64 billion in funding, bringing total program disbursements to roughly $7.2 billion.
The agreement covers the seventh review under the Extended Fund Facility and the second review under the Resilience and Sustainability Facility, the IMF said.
Once the IMF Executive Board approves the deal, Egypt stands to receive about $1.5 billion under the EFF and a further $136 million under the RSF, according to an IMF statement.
The agreement arrives as Egypt continues an IMF-backed reform program centered 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 program once the current arrangement ends in December.
The IMF said the war in the Middle East has had a relatively contained impact on Egypt’s economy, crediting timely policy steps such as fuel and electricity price adjustments and increased social spending to protect vulnerable groups.
Real GDP growth reached 5% in the third quarter, bringing growth for the first three quarters of the fiscal year to 5.2%.
The fund noted Egypt’s flexible exchange rate helped absorb the impact of portfolio outflows, keeping reserves broadly stable through March 2026. It said portfolio inflows have since resumed following the US-Iran agreement, reversing much of the earlier currency depreciation.
Egypt’s fiscal performance remained strong, with primary balance and tax revenue targets exceeded by March 2026. The IMF expects the primary surplus to rise from 4.8% of GDP in fiscal year 2025-26 to 5% in 2026-27, while urging continued fiscal discipline to reduce public debt.
