The International Monetary Fund (IMF) has acknowledged progress in its $8 billion loan program for Egypt, but discussions about increasing the loan size are deemed premature. Jihad Azour, the IMF's director for the Middle East and Central Asia, expressed optimism about improving economic conditions in Egypt, highlighting the importance of the country's financial reserves as a buffer against external shocks. Egypt's President Abdel Fattah el-Sisi has emphasized the need for international institutions to consider the unique regional challenges facing the country, particularly in light of the ongoing conflicts in Israel, Gaza, and Sudan.
The IMF's recent adjustments to its fees and surcharges policy are expected to save Egypt approximately $800 million over the next six years. The IMF team is set to visit Cairo in November for the third review of the program, with Managing Director Kristalina Georgieva also planning to visit to reinforce the institution's support. Despite the challenging economic landscape, the IMF projects Egypt's GDP growth to reach 4.1% in 2025, contingent on the resolution of regional conflicts and the continuation of economic reforms.
