Egypt is expected to get a $1.2 billion loan from the IMF in January, according to a report
Egypt will get $1.2 billion from the International Monetary Fund (IMF) this month. This is part of an $8 billion support program, according to Finance Minister Ahmed Kouchouk on Sunday.
$1.2 billion facility
The IMF signed an agreement in December with Egypt, allowing the country to potentially receive $1.2 billion after the fourth review of its 46-month loan program. However, the funds still need approval from the IMF’s executive board.
“The board will meet in January, and hopefully, we will get the money then,” said Kouchouk in an interview. He also mentioned that Egypt has not asked to increase the $8 billion loan under the current program.
Since September 2021, Egypt has been using its foreign reserves to support its currency amidst economic challenges caused by global and local issues. The country is under pressure to meet its financial obligations and secure more foreign currency to stabilize its economy.
Adding to its struggles, revenue from the Suez Canal—an important source of income—dropped by over 60% in 2024 due to Red Sea tensions. This caused a $7 billion loss. The tensions are linked to attacks by the Houthis on ships connected to Israel, the US, and the UK near the Bab el-Mandeb Strait.
To manage its finances, Egypt aims to raise about $3 billion by June through different types of investments, including bonds for foreign investors, according to Kouchouk.
The IMF emphasized that Egypt needs a comprehensive reform plan. This includes reducing debt, increasing social spending on health, education, and welfare, and rebuilding financial stability.
IMF Support
In March 2024, the IMF reviewed Egypt’s loan program and approved an additional $5 billion, giving Egypt immediate access to about $820 million. In July 2023, after another review, the IMF released another $820 million. Egypt’s 46-month loan program, approved in December 2022, focuses on cutting subsidies for fuel, electricity, and other goods while allowing the currency to adjust freely.
Economic Growth
Egypt’s economy grew by 3.5% in the first quarter of the 2024-25 fiscal year, compared to 2.7% in the same period last year. This growth was driven by government reforms and a recovery in key industries like manufacturing.
The Ministry of Planning expects Egypt’s economy to grow by 4% for the full 2024-25 fiscal year, thanks to ongoing reforms and efforts to boost private sector activity.
Published: 6th January 2025
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