Cairo – Mubasher: The International Monetary Fund (IMF) has reached a staff-level agreement with the Egyptian authorities on a set of comprehensive policies and reforms needed to complete the third review of the loan programme signed in December 2022.

Once the IMF’s executive board approves the third-review agreement, which could take place in the coming weeks, Egypt will receive another tranche of $820 million of the loan, according to a press release.

“While geopolitical tensions and their impact on Egypt remain challenging, the authorities have stayed the course to preserve macroeconomic stability through fiscal discipline, tight monetary policy, and a shift to a flexible exchange rate regime,” the fund said.

The IMF noted that these efforts have improved the economic outlook, FX availability, and inflation, with private sector sentiment showing recovery. However, the fund warned that the economic outlook remains uncertain due to conflicts in Gaza and Israel and trade disruptions affecting the Suez Canal.

The IMF emphasised the importance of strong policies to address high inflation, government debt, and boosting private sector participation.

The initial deal between Egypt and the IMF, signed in December 2022, featured a $3 billion loan to be disbursed in eight instalments over four years. The deal was extended in March 2024 to $8 billion.