Cairo – Mubasher: The executive board of the International Monetary Fund (IMF) has completed the third review of Egypt’s $8 billion loan programme.

The completion of the third review allows Egypt to receive a $820 million tranche of the loan, according to a statement by the IMF.

Antoinette M. Sayeh, Deputy Managing Director, and Acting Chair at the IMF, said: “Strengthened reforms under the EFF-supported programme are yielding positive results. The unification of the exchange rate and the accompanying monetary policy tightening have curtailed speculation, brought in foreign inflows, and have moderated price growth.”

Sayeh added: “The allocation of a portion of the financing from the Ras El-Hekma deal to reserve accumulation and debt reduction provides an additional cushion against shocks,” he commented.

He emphasised that implementing the structural reform agenda is crucial for achieving inclusive and sustainable growth.

Sayeh noted that key reforms include boosting tax revenue, enhancing debt management, and using resources from divestment for debt reduction to allow for more productive spending, such as targeted social spending.

Additionally, he highlighted that restoring energy prices to cost recovery levels by December 2025 is essential for ensuring smooth energy provision and sector balance.

Sayeh also stressed that enhancing the governance of state-owned banks, advancing state-ownership policies, increasing fiscal transparency, and levelling the economic playing field are critical for attracting more private investment.

In March 2024, Egypt signed an agreement with the IMF to extend a $3 billion loan deal to $8 billion. The original agreement was signed in December 2022.