The International Monetary Fund (IMF) has approved the disbursement of $1.7 billion to the Egyptian government, representing the final installment of a loan totaling $5.4 billion, following the confirmation of the completion of the second and final review of Egypt's economic reform program supported by a 12-month stand-by agreement.
The IMF stated in a release that the completion of the second review allows Egyptian authorities to withdraw 1,158.04 million Special Drawing Rights, equivalent to approximately $1.7 billion, bringing Egypt's total withdrawals to 3,763.64 million Special Drawing Rights, or about $5.4 billion, which is 184.8% of its quota.
The IMF had previously announced at the conclusion of the second review of the Egyptian economy on May 25 that it reached a preliminary agreement with Cairo for the disbursement of this final tranche of the loan.
The IMF expects the Egyptian economy to grow by 2.8% in the fiscal year 2020/2021, with the rate projected to rise to 5.2% in the fiscal year 2021/2022. The Fund noted that the Egyptian authorities responded to the COVID-19 crisis with appropriate financial and monetary easing, which helped mitigate health and social impacts while maintaining economic stability, debt sustainability, and investor confidence.
The IMF highlighted ongoing risks arising from global uncertainty, the rising public debt in Egypt, and overall financing needs, emphasizing that fiscal and monetary policies should continue to support recovery while maintaining macroeconomic stability in the near term.
The IMF stressed that deepening and broadening structural reforms will be essential to address post-pandemic challenges, enhance resilience, and unleash Egypt's tremendous growth potential for the benefit of all Egyptians.
