IMF Approves Additional $1.2 Billion for Egypt’s Economic Recovery

The International Monetary Fund (IMF) has approved a $1.2 billion financial package to support Egypt’s economic recovery efforts. Read more on how the funds will be utilized.

On Tuesday, the International Monetary Fund announced that it had completed its fourth review of Egypt’s economic reform program and approved a $1.2 billion disbursement for the North African nation.

The IMF announced in a statement that it finished its fourth review on Monday, allowing Egyptian authorities to immediately access the funds. Additionally, the IMF executive board approved Egypt’s request for an arrangement under the Resilience and Sustainability Facility, providing access to an additional $1.3 billion.

Egyptians have been struggling with escalating inflation as they face increasing daily expenses, which hit another peak last year. This included a rise in fuel prices, an uptick in subway fares, and a decline in the Egyptian pound against foreign currencies. A recent government move to increase minimum monthly wages has yet to provide some relief.

In an announcement last month, Finance Minister Ahmed Kouchouk revealed that starting in July, the monthly minimum wage for public sector workers will rise to EGP 7,000 ($138) from its previous amount of EGP 6,000 ($118.58). This adjustment is designed to align with the private sector’s minimum wage increase implemented on March 1. The initiative forms part of the government’s efforts toward social protection enhancements.

In October, Egypt increased fuel prices by 10% to 17%, a decision expected to affect the costs of goods and services. The price for a liter of diesel — essential for public transportation — rose from 11.5 pounds ($0.23) to 13.5 pounds ($0.25). Meanwhile, the cost of 92-octane gasoline went up from 13.75 pounds ($0.28) to 15.25 pounds ($0.31).

Last spring, Egypt secured an agreement with the IMF to increase its bailout package beyond double, reaching $8 billion. The rise in prices has been considered essential to fulfill the conditions imposed by the IMF for additional support to the nation.