IMF to Set to Release USD 1.2 Billion to Egypt: Fourth Review of Bailout Loan Complete

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Egypt reached a deal with the IMF last spring to more than double the size of its bailout to USD 8 billion. The price hikes have been deemed necessary to meet conditions set by the IMF for further assistance to the country.

The International Monetary Fund said it completed its fourth review of Egypt’s economic reform program, approving a USD 1.2 billion disbursement for the North African country.

The IMF said in a statement it completed its fourth review on Monday and Egyptian authorities can immediately draw the funds. The IMF executive board also granted Egypt’s request for an arrangement under the Resilience and Sustainability Facility with access to an additional USD 1.3 billion.

Egyptians have been grappling with soaring inflation as they navigate rising daily costs that reached another high last year. They included an increase in fuel prices, a hike in subway fares, and a slide in the Egyptian pound against foreign currencies. A recent government decision to raise the minimum monthly wage has granted some relief.

Last month, Finance Minister Ahmed Kouchouk announced that the monthly minimum wage for public sector workers will increase to EGP 7,000 (USD 138) starting in July, up from EGP 6,000 (USD 118.58). It’s meant to match that of private sector workers whose monthly minimum wage increase took effect on March 1. The wage increase for public sector workers comes as part of the government’s social protection initiative.

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Egypt reached a deal with the IMF last spring to more than double the size of its bailout to USD 8 billion. The price hikes have been deemed necessary to meet conditions set by the IMF for further assistance to the country.