Egypt secures $2.3 billion IMF disbursement
The International Monetary Fund (IMF) has approved Egypt’s request to access approximately $2.3 billion from its existing loan program, citing progress in restoring economic stability and curbing inflation under the country’s reform agenda.
In a statement, the Washington-based lender said the disbursement followed reviews of Egypt’s reform measures, which it credited with delivering “a broad-based economic recovery” in the Arab world’s most populous nation, News.Az reports, citing AP.
The IMF noted that Egypt’s gross domestic product expanded by 4.4% between 2024 and 2025.
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Egypt originally secured a $3 billion bailout package from the IMF in 2022. The program was later expanded to $8 billion in 2024 to help stabilize an economy grappling with a severe shortage of foreign currency and soaring inflation, which peaked at 38% in September 2023.
According to the IMF, inflation declined to 11.9% in January, reflecting the impact of measures implemented by Egyptian authorities. These steps included floating the Egyptian pound and raising interest rates to ease price pressures.
Despite the improvements, the IMF cautioned that progress has been “uneven.” The Fund emphasized that a significant portion of Egypt’s economy remains state-controlled and stressed that “decisive efforts to reduce the state’s footprint in the economy will be essential” for sustaining long-term growth.
Egypt’s economy has faced multiple shocks in recent years, including the COVID-19 pandemic, the repercussions of Russia’s invasion of Ukraine, and the ongoing Israel-Hamas war in Gaza.
Further strain has come from attacks by Yemen’s Houthi rebels on Red Sea shipping routes, which have sharply reduced traffic through the Suez Canal — a vital source of foreign currency revenue. Many vessels have rerouted around the southern tip of Africa to avoid the risk.
According to the latest official figures, roughly 30% of Egypt’s population of more than 108 million lives below the poverty line, underscoring the continued economic challenges facing the country.
By Nijat Babayev
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