Slow in the Reform Process in Egypt: IMF

July 20, 2025

Egypt is entering a critical stage in its USD 8 billion loan program with the International Monetary Fund (IMF), as new data shows growing financial pressure and delays in key reforms. The IMF’s latest review highlights a sharp drop in Suez Canal revenues, rising external financing needs, and slower progress in selling state-owned assets.

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The IMF also raised its financing gap projection for FY 2025/2026 to USD 8.2 billion, up from USD 5.2 billion. In FY 2026-27, the gap is expected to nearly double to USD 6.1 billion compared to prior estimates of USD 3.2 billion.

Egypt is entering a critical stage in its USD 8 billion loan program with the International Monetary Fund (IMF), as new data shows growing financial pressure and delays in key reforms. The IMF’s latest review highlights a sharp drop in Suez Canal revenues, rising external financing needs, and slower progress in selling state-owned assets.

According to the report, Egypt’s external financing needs are projected to climb from USD 25.9 billion in FY 2025-26 to USD 30.4 billion before moderating to $27.5 billion. The IMF also raised its financing gap projection for FY 2025/2026 to USD 8.2 billion, up from USD 5.2 billion. In FY 2026-27, the gap is expected to nearly double to USD 6.1 billion compared to prior estimates of USD 3.2 billion.

Notably absent from earlier summaries, the IMF now expects Suez Canal revenues to have declined by 50.7% to USD 3.6 billion in FY 2023-24, down from previous estimates of USD 7.3 billion.