Egypt’s IMF Debts Represent 69% Of Total Arab Countries' Obligations
Egypt's total obligations to the International Monetary Fund (IMF) hit $13.2 billion (SDR 9.9 billion), exceeding the combined IMF debts of eight Arab countries—Jordan, Sudan, Tunisia, Morocco, Mauritania, Somalia, Djibouti, and Comoros—by $7.2 billion, according to IMF data as of November 5, 2024.
Egypt leads the ranking of the most indebted Arab countries to the IMF and is on track to fulfill its commitments until 2028. Following Egypt, Jordan holds the second position with $2 billion in IMF obligations, surpassing Sudan with $1.3 billion, Tunisia with $1.1 billion, and Morocco with $1.05 billion. Other countries on the list owe the IMF less than $1 billion each.
Here is the full list of the Arab nations with the highest level of debt to the IMF:
1. Egypt
Credit outstanding: $13.2 billion
Since joining the IMF in 1945, Egypt has entered into 12 agreements with the organization. In March 2024, the IMF raised Egypt's program funding from $5 billion to $8 billion, compared to the $3 billion approved in December 2022.
November 2024 marks eight years since Egypt's agreement with the IMF on a $12 billion finance deal in 2016. The agreement included floating the exchange rate on November 3 before the board approved it on November 11. The program involved implementing an economic reform initiative that has been recognized as a homegrown effort.
President Abdel Fattah El-Sisi said in October 2024 that "the situation must be reviewed with the IMF," after the Egyptians faced major challenges during the last period related to the increase in the prices of electricity and petroleum products as part of the reform measures agreed upon between the two sides. In addition, the Northern African country faces the impact of geopolitical turmoil on the economy, including the decline in Suez Canal revenues by 24.3% YoY to $6.6 billion during FY 2023/2024.
On November 3, 2024, Egyptian Prime Minister Mostafa Madbouly met with IMF Managing Director Kristalina Georgieva. During the meeting, he stressed that the Egyptian government takes into account that the IMF program does not place any additional burdens on citizens.
In this context, the exchange rate of the dollar against the Egyptian pound rose to reach EGP 49.3, according to the Central Bank of Egypt (CBE) on November 6, 2024, after trading below EGP 49 since mid-August. While the US dollar's highest level in 2024 was at EGP 49.6 on March 6. It is worth noting that the US dollar was traded at about EGP 8.8 on November 2, 2016, one day before the historic floatation decision was made. Core inflation levels also rose to 25% in September 2024, from 13.9% in the same month of 2016. Egypt's overall external debt increased by 174.2% to reach $152.9 billion at the end of June, compared to $55.8 billion in the same month of 2016.
2. Jordan
Credit outstanding: $2 billion
Image by shutterstock \ Paul Saad
Jordan has signed 11 agreements with the IMF since its membership in 1952. Moreover, Jordan's debt to the IMF stands at $2 billion (SDR 1.5 billion) on November 5, 2024, while Jordan will continue to repay them gradually until December 28, 2028.
In January 2024, Jordan agreed with the IMF on a new program under the Extended Fund Facility (EFF) worth $1.2 billion, allowing Jordan to disburse $190 million immediately, and in July 2024, Jordan disbursed about $130 million.
In October 2024, a staff team from the IMF agreed with Jordan to complete the second review of the program, which allows Jordan to disburse about $131 million, after approval by the IMF's board of directors, which is expected to be released soon.
The IMF expects real GDP to grow by 2.3% this year, offset by weak domestic demand with stronger export performance, with growth rising to 2.5% next year, according to the statement issued by the IMF on the second review of the program on October 10.
Referring to the ramifications of the geopolitical tension in the Middle East on the Jordanian economy, Jihad Azour, IMF's Middle East and Central Asia (MCD) director said, “The Jordanian economy is close to the hot area. Jordan was affected in tourism, as I said before. And this impact on tourism also affected the economy in Jordan.”
3. Sudan
Credit outstanding: $1.3 billion
Sudan has signed 11 agreements with the IMF, with the current outstanding debt amounting to $1.3 billion (equivalent to SDR 991.6 million). The repayment schedule extends until 2028. In June 2021, the IMF and the World Bank's International Development Association (IDA) jointly decided that Sudan would receive debt relief under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative. Sudan became the 38th country to benefit from this initiative, with an expected reduction of $50 billion in Sudan's overall debt. The same month saw the IMF approval of a $2.5 billion Extended Credit Facility (ECF) agreement for Sudan to support the implementation of HIPC-related reforms, but this financing has not been completed as only 57.2% of it has been disbursed so far.
Moreover, Sudan faces major internal conflicts that began in April 2023, putting significant pressure on the economy. The IMF expects Sudan's economy to contract by 20.3% this year, compared to a decline of 18.3% last year. The most recent GDP growth in Sudan was achieved in 2020 at 0.5% in 2021. In November 2024, Sudan’s Finance Minister Gibril Ibrahim had expected his country to receive a total of $454 million in foreign financing soon from foreign financing institutions.
4. Tunisia
Credit outstanding: $1.1 billion
Image by shutterstock \ Andreas Wolochow
Tunisia has engaged in 11 agreements with the IMF since joining the fund in 1958 and is committed to fulfilling its outstanding debts until 2028. Amid the COVID-19 outbreak in 2020, Tunisia secured a loan of approximately $745 million from the IMF through the Rapid Financing Instrument (RFI). Subsequently, in October 2022, Tunisia and the IMF reached a 48-month expert-level agreement under the Extended Fund Facility (EFF), amounting to about $1.9 billion to support economic policies. However, the agreement has yet to yield the desired outcomes.
President Kais Saied has emphasized Tunisia's willingness to cooperate with the IMF, but on the condition that such cooperation aligns with the nation's sovereign decisions, rather than being bound by past terms or impositions.
The World Bank projects growth rates of 2.4% for both 2024 and 2025, with a slight growth dip to 2.2% in 2026. This forecast hinges on the alleviation of drought conditions, advancements in fiscal reforms, and a competitive economic environment.
5. Morocco
Credit outstanding: $1.05 billion
In May 2024, the IMF board approved a mid-term review of the $5 billion under the Flexible Credit Line (FCL), designed for crisis prevention, agreed upon in April 2023. During the same meeting, the board approved the first review of the $1.32 billion Resilience and Sustainability Facility (RSF), agreed upon in September 2023, to address the economic repercussions of the earthquake that struck the country during the same period.
Since 2012, Morocco has benefited from four consecutive arrangements under the Precautionary and Liquidity Line (PLL), each valued at around $3 billion. The first PLL approval was in August 2012, followed by additional agreements in July 2014, July 2016, and December 2018. The fourth arrangement concluded in April 2020, when Morocco utilized all available resources to mitigate the social and economic impacts of the COVID-19 pandemic. Overall, Morocco has engaged in 21 agreements with the IMF since joining the Fund in 1958.
6. Mauritania
Credit outstanding: $367.3 million
Mauritania has agreed with the IMF on 19 agreements since becoming a member in 1963. Its credit outstanding amounts to $367.3 million (SDR 275.4 million). In December 2023, the IMF's executive board approved $258.2 million in funding through the Resilience and Sustainability Facility (RSF) for Mauritania. Additionally, in January 2023, the board approved 42-month arrangements under the Extended Credit Facility and Extended Fund Facility in the amount of $ 86.9 million for Mauritania. These three existing agreements are set to expire in July 2026. The Mauritanian economy is projected to experience a slight growth slowdown this year, with a growth rate of 4.6% in 2024 compared to 6.5% in 2023, primarily due to a deceleration in the extractive sector. The growth rate is further anticipated to decrease to 4.2% in 2025, as indicated in the Article IV consultation statement released in October 2024.
7. Somalia
Credit outstanding: $106 million
Image by shutterstock \ Abdulkadir Hirabe
The IMF has 16 agreements with Somalia since its membership in 1962. In December 2023, the IMF board approved the $100 million Extended Credit Facility agreement, 50% of which has been withdrawn so far, with the agreement expiring in December 2026.
In March 2020, the IMF Board approved two arrangements both worth $395.5 million (SDR 292.4 million) under Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) for Somalia. Moreover, IMF and IDA have approved Somalia's HIPC Initiative Completion Point, resulting in $4.5 billion in debt relief for the country, in December 2023.
8. Djibouti
Credit outstanding: $42.4 million
Since joining in 1978, Djibouti has entered into only four agreements with the IMF. In May 2020, the executive board approved a $43.4 million arrangement under the Rapid Credit Facility (RCF) to support Djibouti's efforts in addressing the COVID-19 crisis. During the same meeting, the board also approved grants under the IMF’s Catastrophe Containment and Relief Trust (CCRT) to cover Djibouti’s five-month debt service falling due to the IMF of $2.3 million (SDR 1.692 million).
9. Comoros
Credit outstanding: $24.2 million
The IMF's board approved a $43 million (SDR 32.04 million) four-year agreement for Comoros in June 2023, a third of which has been withdrawn so far. In April 2020, the IMF approved two agreements, the Rapid Credit Facility (RCF) of about $4.05 million and the Rapid Financing Instrument (RFI) of about $8.1 million, to meet Comoros' urgent balance of payments needs caused by the COVID-19 pandemic. In total, the Comoros and the IMF have reached seven agreements since the Arab country’s membership in 1976.