IMF Review Delayed

Informed sources revealed ai media locals in Egypt that the deputy director general of the International Mary Fund, Antote Sayeh, is expected to arrive in Cairo in the next few days for talks with the Egyptian government on the first review of the 3 billion dollar financing programme.

The IMF was due to conduct the first review of Egypt’s loan program by mid-March, but decided to postpone it without announcing a date for the start of the review.

Program Reforms

As part of the $3 billion funding program announced last December, the Egyptian government pledged to adopt a flexible exchange rate for the dollar and accelerate the government’s supply program, which is expected to generate around $2 billion dollars through the sale of state-owned assets.

And with the intense maneuvering of the Egyptian government, exchange rates have recently recorded a remarkable stability, which has put an end to speculation on the dollar on the black market. This coincided with the Egyptian government and Central Bank of Egypt continuing to issue releases for Egyptian ports, which reduced importers’ dependence on the parallel market to supply hard currency.

Productive Talks with IMF

And last April, the International Mary Fund said its talks with Egypt would hypothetically continue before the first review of Egypt’s reform program began. A statement described the discussions between the IMF and Egypt in review preparation as “productive”.

He stressed that the discussions took place on the sidelines of the spring meetings of the World Bank and the International Mary Fund, where they addressed a number of issues relating to the implementation of the program and the prospects of the Egyptian economy, and will continue soon towards the start of the task of Egypt’s first program review.

Far-reaching Reforms for Funding Program Reviews

The International Mary Fund had waited for the Egyptian government’s move to enact more far-reaching reforms it promised before conducting the first review of the $3 billion program. In fact, the government is moving vigorously in the bidding program file and has announced the implementation of more than one deal during the last period.

The bottom was in waiting to implement deals under the government’s tender program, with real flexibility in the price of the Egyptian currency to ensure the success of the first review of the funding program.

State Asset Sales

And last February, the Egyptian Cab revealed a list of 32 companies whose shares it will sell during the year in course, with the possibility of increasing this number, according to statements by the Egyptian finance minister, Mohamed Maait. According to the International Mary Fund’s programme, the Egyptian government is expected to raise about $2 billion from the sale of state holdings during the fiscal year in course, which will end in June.

Timeline of Loan Program Review

Last December, the International Mary Fund approved a 46-month financing program for Egypt. From the document published by the fund it emerged that the Egyptian program will be subject to two annual reviews until mid-September 2026, for a total of 8 reviews, and that the first review, in basis on which the second tranche of the loan will be disbursed, would have taken place in mid-March.

IMF Director’s Recommendations

Earlier, the director of the International Mary Fund for the Middle East, North Africa and Central Asia, Jihad Azour, said: “Exchange rate flexibility is the best way for Egypt to protect its economy from external shocks”. He stressed that it is necessary to “redesign the role of the state to focus on priority sectors, increase the contribution of the private sector to investment and support it to achieve growth and create more foreign currencies”.