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Egypt Seeks to Review Goals Through End of IMF Program, PM Says

Tourists look out toward Cairo, Egypt. (Islam Safwat/Bloomberg)

(Bloomberg) -- Egypt has asked the International Monetary Fund to review the targets for the full duration of its $8 billion program, Prime Minister Mostafa Madbouly said.

IMF officials visiting Egypt in recent weeks showed understanding of the “practical” requests, Madbouly told reporters on Wednesday. The fund is expected to complete its latest review of the North African country’s 46-month program in the next two days, he said.

The government made “progress” during the talks that moved in a “positive” direction, Madbouly said. He didn’t elaborate.

Egypt and the IMF in March agreed on expanding the size of a loan program first approved in December 2022, part of a vast global bailout as conflict in the Middle East put a focus on the nation’s role as a regional powerbroker.

Authorities have this year devalued the currency for the fourth time since early 2022, hiked interest rates to a record and increased the prices of subsidized fuel, electricity and bread. Cutting state spending in a key component of the IMF deal.

The government last month suggested taking further dramatic steps was becoming increasingly difficult without placing an unbearable burden on Egypt’s 107-million-plus population, the Middle East’s largest.

Visiting Cairo earlier in November, IMF Managing Director Kristalina Georgieva hailed efforts to push ahead with difficult economic reforms. 

--With assistance from Sherif Tarek.

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