IMF official foresees gradual debt reduction for Egypt through loan program extension

The International Monetary Fund’s loan program with Egypt should help the country gradually reduce its debt burden, an IMF official said on Thursday.

“We gradually expect with implementation of the program, improvement of balance sheets, and increase in inflows that Egypt will be able to reduce and pay back part of its debt,” IMF Middle East and Central Asia director Jihad Azour told a news briefing.
The IMF expects Egypt’s debt-to-GDP ratio to drop to 82.6 percent next year from 92.4 percent this year, and the trend should continue downward, Azour added.

“This is also one of the main pillars of our program to allow Egypt to gradually reduce the burden of debt,” he said.

Last month, the IMF said it would increase its current loan program with Egypt by $5 billion.

The new agreement is an expansion of the $3 billion, 46-month Extended Fund Facility that the IMF struck with Egypt in December 2022.

As part of the agreement, Egypt received $820 million from the IMF earlier following the conclusion of a second review of the program.

late last month, with the country expected to receive another $820 million following a third review within three months, Finance Minister Mohamed Maait told Asharq television on Thursday.