IMF to begin delayed review of Egypt loan program: PM

CAIRO

International Monetary Fund Managing Director Kristalina Georgieva, on stage, at left, takes part in a news conference with Egypt's Prime Minister Mostafa Madbouly, in the New Administrative Capital, just outside Cairo, Egypt, Sunday, Nov. 3, 2024.

The International Monetary Fund will this week begin its delayed fourth review of Egypt's 46-month loan programme, Prime Minister Mostafa Madbouly has said.

The review had originally been scheduled for the end of September.

It comes under an agreement Cairo signed with the IMF in April, expanding an original loan from $3 billion to $8 billion to help Egypt manage its economic challenges.

The fourth review will unlock $1.2 billion in new financing.

At a Cairo joint news conference with IMF's managing director Kristalina Georgieva, Madbouly said on Nov. 3 the IMF team would start work on the review today "with Egypt's central bank and relevant ministries."

Georgieva praised "the commitment and the strength of the actions Egypt has already taken."

She cited moving to "a flexible exchange rate regime", boosting "the role of the private sector as a source of growth and jobs" and consolidating "social protection by moving away from untargeted subsidies."

The IMF chief acknowledged the challenges faced by the country's economy amid regional conflicts.

She said "conditions have become more difficult for no fault of your own, but because of the conflict in your neighborhood".

Earlier on Nov. 3, Georgieva met President Abdel Fattah al-Sisi.

Last month, Sisi said his government might reconsider the loan program if it creates "unsustainable public pressure."

He cited challenges from ongoing regional instability, particularly the prolonged conflict in the Gaza Strip.

Despite the rising cost of living, Georgieva said on Nov. 3 Egyptians "will see the benefits of these reforms in a more dynamic, more prosperous Egyptian economy."