IMF delays loan review for Egypt, merges assessments amid calls for deeper reforms

The International Monetary Fund (IMF) has announced the decision to combine the fifth and sixth reviews of Egypt’s $8 billion loan program.

The update was shared by Julie Kozack, Director of Communications at the IMF, during a press briefing held on Thursday.

The move follows earlier reports suggesting that the IMF and Egyptian authorities were in discussions about streamlining the review process.

By merging the two assessments, the IMF now anticipates a delay, with the review process expected to conclude in the fall instead of the originally planned timeline.

This delay also pushes back the disbursement of a $1.3 billion tranche that Egypt had been counting on for July.

Kozack underlined the need for more time to advance structural reforms—particularly those aimed at reducing the dominance of the state in the economy and creating more space for private sector growth.

While acknowledging the progress Egypt has made in its macroeconomic reform efforts, Kozack stressed that further action is needed to boost growth, enhance its sustainability, implement the State Ownership Policy, and move forward with asset sales.

The precise amount of the combined financing tranche is still uncertain. Kozack noted that it is too early to determine its size, as it will depend on Egypt’s financial needs, which remain under active review.

Additionally, Kozack confirmed that the first review of the $1.3 billion Egypt secured under the IMF’s Resilience and Sustainability Facility (RSF)—which supports climate resilience efforts—will take place alongside the sixth review.