IMF to begin 5th review of Egypt's economic programme this week

The International Monetary Fund will begin the fifth review of Egypt's $8 billion economic reform programme, with a team scheduled to arrive in Cairo this week, the IMF said in a statement on Monday.

The IMF board approved the fourth review on March 11, unlocking a disbursement of $1.2 billion in a 46-month IMF loan programme first approved in 2022 and later expanded following the outbreak of fighting in Gaza.

Egypt had been suffering from a severe shortage of foreign currency and inflation that peaked at 38% in September 2023.

The IMF has yet to publish a staff report from the fourth review, saying the Egyptian authorities needed more time to consider its publication.

Visit to Cairo

The IMF team is expected to begin its visit on Tuesday and remain in Cairo until May 16, a person familiar with the mission said.

The IMF board in March also approved an additional $1.3 billion in financing under its Resilience and Sustainability Fund.

In the fourth review, the IMF board approved a request by Egypt to waive its primary budget surplus target.

The surplus was expected to reach 4% of GDP in the fiscal year that will begin on July 1, 0.5% less than Egypt had committed to earlier in the programme.