IMF completes review, approves USD820M withdrawal to Egypt

(MENAFN) On Monday, the International Monetary Fund (IMF) concluded a review of Egypt's economic performance, granting approval for the country to withdraw USD820 million from its loan program. This decision marks the third review under the latest 46-month loan arrangement, initially approved in 2022 and later increased to USD8 billion. The IMF's assessment indicates that Egypt's efforts to stabilize its macroeconomic conditions are showing positive results. Key achievements include a reduction in inflationary pressures, elimination of the foreign exchange deficit, and meeting fiscal targets related to substantial infrastructure spending.

Despite these advances, the IMF has emphasized the need for Egypt to make further progress, particularly in reforming state-owned enterprises. The IMF's statement highlighted that while some critical structural reforms have been implemented, more aggressive efforts are necessary to enforce the state ownership policy. The IMF has urged Egypt to accelerate its divestment program from state-owned companies and introduce measures to ensure fair competition, addressing concerns about potential market distortions.

Additionally, the IMF stressed the importance of restoring energy prices to cost-recovery levels by December 2025. This move is seen as crucial for maintaining a stable energy supply and minimizing disruptions within the sector. In preparation for the IMF review, Egypt had already increased domestic fuel prices by up to 15 percent, a step that reflects ongoing adjustments in response to the fund's recommendations. 

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