IMF Economic Review for Egypt Delayed to Q1 2024

An Egyptian lawmaker has revealed that the first review by the International Monetary Fund (IMF) of Egypt’s economic reform program, initially scheduled for September, has been postponed for the second time.

“The initial review by IMF experts this month will not proceed due to the government’s delay in fulfilling some of the commitments it made with the IMF under the recent agreement,” said Yasser Omar, the Deputy Chairman of the parliamentary Planning and Budget Committee.

In December 2022, the IMF's Executive Board approved a $3 billion loan to Egypt under a 46-month agreement. Egypt received the first installment of $347 million in December, with the remaining disbursements contingent on reviews conducted by IMF experts.

However, the implementation of the agreement came to a halt because the IMF has not conducted the first review of the economy, as the government has refrained from taking more stringent steps to adhere to a flexible exchange rate for its national currency.

This reluctance stems from the significant inflation rates and concerns about the economic and social repercussions such a decision might have on citizens.