IMF announces the disbursement of $2.3 billion to Egypt following economic reforms that have contributed to stabilizing the country's economy

IMF Approves $2.3 Billion Disbursement for Egypt Amid Economic Reforms

The International Monetary Fund has authorized Egypt to access approximately $2.3 billion from a previously sanctioned loan, citing the country's advancements in stabilizing its economy and curbing inflation as part of its ongoing reform agenda.

According to a statement released by the IMF on Wednesday, this decision comes after thorough evaluations of Egypt’s reform measures, which the Fund credits with sparking a widespread economic rebound. The statement highlighted that Egypt’s gross domestic product expanded by 4.4% between 2024 and 2025.

Originally, Egypt secured a $3 billion bailout package from the IMF in 2022. This amount was raised to $8 billion in 2024 to help the country cope with a severe foreign currency shortage and inflation, which soared to a record 38% in September 2023.

The IMF noted that inflation had dropped to 11.9% by January, reflecting the impact of recent policy changes.

To address rising prices, Egyptian authorities implemented measures such as floating the national currency and increasing interest rates.

Despite these improvements, the IMF pointed out that progress has been inconsistent. The Fund emphasized that state involvement in the economy remains excessive and stressed the need for significant steps to reduce government control over economic activities.

Challenges Facing Egypt’s Economy

Egypt’s financial stability has been severely impacted by several external shocks, including the COVID-19 pandemic, the war in Ukraine, and the ongoing conflict in Gaza.

Additionally, attacks by Houthi militants in Yemen on Red Sea shipping lanes have led to a sharp decline in Suez Canal revenues, a crucial source of foreign currency for Egypt. These disruptions have forced vessels to bypass the canal, opting for longer routes around Africa.

Recent government statistics reveal that nearly 30% of Egypt’s population—over 108 million people—live below the poverty line.