IMF releases $2.3 billion for Egypt as reforms stall

The International Monetary Fund has released approximately $2.3 billion for Egypt following a fresh review of the country's economic reform program, as Cairo continues its battle to avoid a full-blown debt crisis.

The disbursement is part of a broader $8 billion IMF package spread over nearly four years, conditional on Egypt implementing a series of structural reforms. An additional $273 million may also be unlocked through the IMF's Resilience and Sustainability Fund, designed to support long-term ecological transition.

The IMF acknowledged progress, noting that "Egypt's macroeconomic situation has improved through sustained stabilization efforts," crediting tight monetary and fiscal policies alongside exchange rate flexibility for restoring stability and curbing inflation.

However, the Fund did not spare the criticism. Structural reforms have been "uneven," and efforts to reduce state dominance in the economy have moved "slower than expected."

Egypt's road has been anything but smooth. The COVID-19 pandemic, the war in Ukraine, and more recently the Gaza conflict and Houthi attacks in the Red Sea have hammered Suez Canal revenues — a critical source of foreign currency. Repeated currency devaluations and rising fuel and transport costs have further squeezed ordinary Egyptians.

The IMF's latest injection buys Cairo time — but the pressure to deliver meaningful reform remains very much on.