Prime Minister Mostafa Madbouly announced that Egypt will not require a new program from the International Monetary Fund (IMF) beyond its current arrangement, anticipating that the existing program will be the nation’s final loan from the global fund by 2026 or 2027.
During the government’s weekly press conference, Madbouly said that the IMF imposes no conditions on Egypt but rather serves as a “certificate of trust” in the Egyptian economy. He highlighted the government’s detailed plan – extending to 2030 – aimed at achieving economic independence, with a strong focus on bolstering the private sector’s role and ensuring sustainable economic growth.
Regarding recent economic performance, Madbouly highlighted several positive trends: the Egyptian economy achieved a solid 3.9 percent real growth rate during the first half of the 2024/2025 fiscal year. Inflation has seen a significant decline, reaching 13.9 percent in April 2025, a notable reduction from 37 percent just a year prior. Furthermore, the budget deficit narrowed to 6.5 percent.
Madbouly also noted a 17 percent surge in foreign direct investments and a robust 33 percent increase in non-petroleum exports over the initial nine months of 2024. The unemployment rate has also dropped to an unprecedented low, falling below seven percent – the lowest in Egypt’s recorded history.
These improvements, alongside ample foreign currency reserves capable of covering essential needs, including petroleum imports, collectively underscore the nation’s strengthened economic stability.
A long history with the IMF
Egypt’s engagement with the International Monetary Fund first began in May 1962, marked by its inaugural loan agreement designed to stabilize the economy. Decades later, in the 1970s, under President Anwar Sadat, Egypt secured a $186 million loan to tackle external payment challenges and inflationary pressures.
However, Egypt often did not complete most IMF programs due to stringent conditions, such as devaluing the pound, raising fuel prices, imposing new taxes, and accelerating privatization, all of which raised social concerns.
The most significant cooperation program with the IMF commenced in 2016, providing Egypt with a $12 billion loan disbursed in six tranches over three years. This coincided with an economic reform program that included floating the Egyptian pound and reducing subsidies.
In 2020, the IMF provided $2.77 billion in emergency aid through its Rapid Financing Instrument to mitigate the repercussions of the COVID-19 pandemic.
Subsequently, in December 2022, the Fund approved a new three billion dollar program, which was expanded to eight billion in March 2024 to support the economy amidst challenges of foreign currency shortages and a weakening pound.
The current IMF program, slated to run until December 2026, primarily focuses on achieving macroeconomic stability, strengthening the flexible exchange rate, reducing the state’s economic footprint, and enhancing the nation’s competitiveness.
No new IMF program for Egypt, Prime Minister declares Egypt Independent.
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