Egypt unlocks $820 million IMF support after loan program review

Cairo: Egypt has successfully completed a crucial review of its expanded International Monetary Fund (IMF) loan program, securing 820 million dollars in support for its economy, which is emerging from a severe crisis. The IMF praised Egypt's recent efforts to restore macroeconomic stability, noting that fiscal targets, including those related to large infrastructure project spending, have been achieved.

The IMF agreement, along with a significant investment from the United Arab Emirates, forms the foundation of a 57 billion dollars global bailout, providing a fresh start for the Middle East's most populous country after two years of economic uncertainty. In March, the IMF increased Egypt's existing 3 billion dollars loan agreement to 8 billion dollars, considering the impact of the Israel-Hamas conflict on key foreign revenue sources like tourism and Suez Canal fees.

Egypt should continue to concentrate on reducing its deficit and delivering targeted social expenditure, according to a statement made by the IMF last month. The IMF provides the cash in installments following regular evaluations. As the government cuts back on spending, changes are already being made to the subsidy programs that are utilized by the vast majority of the 105 million+ citizens of the nation.
Authorities raised the cost of certain gasoline items by as much as 15 percent last week; they indicated that these gradual price hikes would go on until December 2025. In addition, June saw the first price increase in decades for subsidized bread, and it is generally anticipated that energy rates will rise.