The International Monetary Fund (IMF) has granted Egypt a reprieve on several conditions linked to its $8 billion financial support package, allowing the country additional time to implement crucial reforms. This decision comes as part of the IMF's third review of the agreement established in 2022, which has seen multiple delays in disbursement due to Egypt's struggle to meet specific criteria, particularly regarding exchange rate flexibility.
In a significant move, the IMF has agreed to postpone the annual audits of Egypt's financial accounts, now due at the end of November, and has extended the deadline for the Central Bank's recapitalization plan until the end of August. These adjustments aim to give the Egyptian authorities more time to assess their financial needs and develop a viable strategy for the future.
Moreover, the IMF hinted at a potential shift in Egypt's fuel pricing strategy, suggesting that the country may abandon its quarterly fuel price hikes in favor of a commitment to align prices with cost recovery levels by the end of 2025. This change is deemed essential for ensuring a stable energy supply and addressing sector imbalances.
