The International Monetary Fund on Tuesday reached an agreement with Egypt, allowing the country to access about $1.2 billion, subject to approval by the executive board.
This follows the IMF staff-level agreement on the fourth review under the Extended Fund Facility (EFF) arrangement.
The extended fund facility is aimed at supporting Egypt’s efforts to secure a path for economic recovery.
“The Egyptian authorities have continued to implement key policies to preserve macroeconomic stability, despite ongoing regional tensions that are causing a sharp decline in Suez Canal receipts,” said Ivanna Vladkova Hollar, the IMF's Egypt mission chief.
In November, the Washington-based lender noted the challenges faced by Egypt, most notably the spillover effects from the Gaza war and trade disruptions in the Red Sea, where revenue has fallen by 70 per cent.
The IMF's managing director Kristalina Georgieva urged the Arab world’s most populous nation to continue implementing reforms agreed to as part of an $8 billion loan programme, during her visit to Egypt that month.
The IMF's latest statement on Egypt's Extended Fund Facility (EFF) arrangement underscores the urgency for the government to accelerate its exit from an economy that it continues to dominate, as one of the more crucial aspects of the reform agenda.
The same point was recently raised in a World Bank report that emphasised the state's exit as an essential route to economic recovery for Egypt to navigate through 2025 without requiring another deal like the sale of Ras El Hekma to a UAE consortium for $35 billion, which took place earlier this year.
The Ras El Hekma has proven to be a lifesaver for the Egyptian economy in 2024 that allowed it to bring down external debt and raise foreign reserves, however, its one-off nature means that during 2025, the government has to fend for itself.
The fund's call for reducing the state's footprint in the economy and levelling the playing field for the private sector underscores the importance of these reforms in attracting foreign investment and unlocking Egypt's full economic potential.
Egypt’s annual urban inflation rate in November dipped to 25.5 per cent, almost a two-year low. The drop comes as citizens throughout Egypt feel the burden of considerable hikes to their costs of living.
Bread, transportation and energy costs, to name a few things, are significantly more expensive compared to just two years ago, leaving many struggling.
The IMF said while Egypt's plans to streamline and simplify the tax system are commendable, further reforms will be needed to enhance domestic revenue mobilisation efforts.
The fund also alluded to the issue of tax exemptions granted to state and military-owned companies, which are part of the larger state presence in the economy that the fund insists Egypt must reduce.
The statement implies that raising taxes on some while maintaining exemptions for others is not a sustainable approach to enhancing domestic revenue mobilisation efforts.
“While Egypt faces headwinds from the difficult external environment, there was agreement that further efforts were needed to accelerate the divestment programme,” said Ms Vladkova Hollar.
“The authorities expressed commitment to redouble their efforts in this area, which is crucial to support private sector development and to reduce the high debt burden,” she added.
Although the IMF had previously shown leniency towards the government's pace of economic disengagement when President Abdel Fattah El Sisi requested a loan extension due to geopolitical conditions, the fund now appears to be reasserting the urgency of private sector reforms.
The IMF said that moving forward, Egyptian authorities had also agreed to pursue policies to boost domestic revenue, improve the country’s business environment, and enhance governance and transparency.
“A comprehensive reform package is needed to ensure that Egypt rebuilds fiscal buffers to reduce debt vulnerabilities, and generates additional space to increase social spending, especially in health, education and social protection,” Ms Vladkova Hollar said.
Egypt's economy has faced several challenges in recent years, including high debt levels, inflation and a foreign exchange shortage.
However, the country has made progress in its economic reforms, which has earned it consecutive bailout deals worth more than $60 billion from international partners.
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EA Sports FC 25
Developer: EA Vancouver, EA Romania
Publisher: EA Sports
Consoles: Nintendo Switch, PlayStation 4&5, Xbox One and Xbox Series X/S
Rating: 3.5/5
1,000 Books to Read Before You Die: A Life-Changing List
James Mustich, Workman
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Results:
6.30pm: Maiden Dh 165,000 1,400m.
Winner: Walking Thunder, Connor Beasley (jockey), Ahmad bin Harmash (trainer).
7.05pm: Handicap (rated 72-87) Dh 165,000 1,600m.
Winner: Syncopation, George Buckell, Doug Watson.
7.40pm: Maiden Dh 165,000 1,400m.
Winner: Big Brown Bear, Pat Dobbs, Doug Watson.
8.15pm: Handicap (75-95) Dh 190,000 1,200m.
Winner: Stunned, Pat Dobbs, Doug Watson.
8.50pm: Handicap (85-105) Dh 210,000 2,000m.
Winner: New Trails, Connor Beasley, Ahmad bin Harmash.
9.25pm: Handicap (75-95) Dh 190,000 1,600m.
Winner: Pillar Of Society, Pat Dobbs, Doug Watson.
Zayed Sustainability Prize
RESULTS
%3Cp%3E%0D%3Cstrong%3E6pm%3A%3C%2Fstrong%3E%20Marfa%20Deira%20%E2%80%93%20Conditions%20(PA)%20Dh80%2C000%20(Dirt)%201%2C200m%0D%3Cbr%3E%3Cstrong%3EWinner%3A%3C%2Fstrong%3E%20Wadheha%2C%20Bernardo%20Pinheiro%20(jockey)%2C%20Majed%20Al%20Jahouri%20(trainer)%0D%3Cbr%3E%3Cstrong%3E6.35pm%3A%20%3C%2Fstrong%3EDubai%20Creek%20%E2%80%93%20Maiden%20(TB)%20Dh82%2C500%20(D)%201%2C400m%0D%3Cbr%3E%3Cstrong%3EWinner%3A%20%3C%2Fstrong%3EBarq%20Al%20Emarat%2C%20Bernardo%20Pinheiro%2C%20Ismail%20Mohammed%0D%3Cbr%3E%3Cstrong%3E7.10pm%3A%20%3C%2Fstrong%3EMina%20Hamriya%20%E2%80%93%20Handicap%20(TB)%20Dh95%2C000%20(D)%201%2C600m%0D%3Cbr%3E%3Cstrong%3EWinner%3A%3C%2Fstrong%3E%20Tahdeed%2C%20Dane%20O%E2%80%99Neill%2C%20Michael%20Costa%0D%3Cbr%3E%3Cstrong%3E7.45pm%3A%3C%2Fstrong%3E%20Mina%20Rashid%20%E2%80%93%20Maiden%20(TB)%20Dh82%2C500%20(D)%201%2C900m%0D%3Cbr%3E%3Cstrong%3EWinner%3A%20%3C%2Fstrong%3ESeyaasi%2C%20Xavier%20Ziani%2C%20Salem%20bin%20Ghadayer%0D%3Cbr%3E%3Cstrong%3E8.20pm%3A%20%3C%2Fstrong%3EAl%20Garhoud%20Sprint%20DP%20World%20%E2%80%93%20Listed%20(TB)%20Dh132%2C500%20(D)%201%2C200m%0D%3Cbr%3E%3Cstrong%3EWinner%3A%3C%2Fstrong%3E%20Mouheeb%2C%20Ray%20Dawson%2C%20Michael%20Costa%0D%3Cbr%3E%3Cstrong%3E8.55pm%3A%3C%2Fstrong%3E%20Mirdiff%20Stakes%20Jebel%20Ali%20Port%20%E2%80%93%20Conditions%20(TB)%20Dh120%2C000%20(D)%201%2C400m%0D%3Cbr%3E%3Cstrong%3EWinner%3A%3C%2Fstrong%3E%20Seyouff%2C%20Antonio%20Fresu%2C%20Michael%20Costa%0D%3Cbr%3E%3Cstrong%3E9.30pm%3A%3C%2Fstrong%3E%20Jebel%20Ali%20Free%20Zone%20%E2%80%93%20Handicap%20(TB)%20Dh95%2C000%20(D)%202%2C000m%0D%3Cbr%3E%3Cstrong%3EWinner%3A%20%3C%2Fstrong%3EAjuste%20Fiscal%2C%20Jose%20da%20Silva%2C%20Julio%20Olascoaga%3C%2Fp%3E%0A
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Mohammed bin Zayed Majlis
KILLING OF QASSEM SULEIMANI
WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
The five pillars of Islam
World Cup final
Who: France v Croatia
When: Sunday, July 15, 7pm (UAE)
TV: Game will be shown live on BeIN Sports for viewers in the Mena region
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The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
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Mohammed bin Zayed Majlis
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What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
Killing of Qassem Suleimani
Brief scores:
Toss: Northern Warriors, elected to field first
Bengal Tigers 130-1 (10 ov)
Roy 60 not out, Rutherford 47 not out
Northern Warriors 94-7 (10 ov)
Simmons 44; Yamin 4-4
Killing of Qassem Suleimani
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Killing of Qassem Suleimani
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
