IMF grants initial approval of $1.2bn fourth review to Egypt
The International Monetary Fund said on December 25th that it reached an agreement at staff-level with Egypt on the fourth review under its extended fund facility arrangement, which could potentially unlock a $1.2 billion disbursement, according to Reuters.
Egypt, which is facing high inflation and a lack of foreign currency, agreed to the $8 billion, 46-month facility back in March. A decline in revenue from the Suez Canal caused by regional tensions in 2024 compounded its economic woes.
The IMF said Egypt had agreed to increase its tax-to-revenue ratio by 2% of gdp until 2027, with a focus on eliminating exemptions as opposed to increasing taxes.
Reuters
